Overview On November 20, 2025 , the Secretary of the Department of Financial Services (DFS) , Ministry of Finance, Shri M. Nagaraju , chaired an Inter-Departmental Committee (IDC) meeting. The meeting focused on proposals related to the establishment, relocation, and expansion of foreign and Indian banks. Key Developments IDC Composition The Inter-Departmental Committee (IDC) included representatives from: Ministry of Home Affairs (MHA) Ministry of External Affairs (MEA) Department of Commerce (DoC) Reserve Bank of India (RBI) Deliberations The IDC addressed the following key areas: Proposals from the Reserve Bank of India (RBI) concerning the establishment of branches, representative offices, and subsidiaries of foreign banks in India. Proposals from Indian banks seeking to expand their presence abroad through similar arrangements. Requests from foreign banks for the relocation of their existing branches within India. Recommendations After careful consideration, the Committee recommended the proposals presented before it. UPSC Relevance GS Paper 3: Economy This news is relevant to GS Paper 3 (Economy) , specifically the sections on banking, financial institutions, and foreign investment. Understanding the regulatory processes and inter-departmental coordination involved in allowing foreign banks to operate in India is crucial. Key Concepts Foreign Banks: Their role in the Indian economy and financial system. RBI Regulations: The regulatory framework governing foreign banks in India. Inter-Departmental Coordination: The importance of coordination between different government bodies in policy implementation. Important Facts The Department of Financial Services (DFS) serves as the nodal authority for evaluating proposals from both foreign and domestic banks. The IDC consults with member ministries, including the MHA , MEA , and DoC , to ensure a comprehensive and consensus-based approach. The meeting took place on November 20, 2025 .