Global banks forced to step up supervision of India operations

Global banks that outsource work overseas will be forced to step up supervision of back office operations after lapses involving Indian offshore units.

The New York state banking regulator this week accused Standard Chartered of hiding $250 billion in transactions with Iran and did not give proper oversight to its back office operation in Chennai, India.

"If they don't put (in) enough oversight, governance procedures and practices, then you will have a problem with the satellite centre, whether that is located onshore or offshore," said Bundeep Singh Rangar, chairman of London-based IndusView Advisors, whose firm advises foreign companies, including technology firms, on doing business in India.

Drawn by an English-speaking population and wages that can be one-fifth those in the West, more than three-quarters of global banks have a direct or third-party offshore presence in India.

Bank of America Merrill Lynch, Barclays, Goldman Sachs, HSBC, JPMorgan and RBS are among financial giants employing thousands in India. These wholly owned offshore operations, running around the clock, are known as "captive" centres.

For more.

Also Read

BEA’s Ivy Chan on managing banking risks and trade war shifts

Cambodia enables cross-border QR code payments via UnionPay

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit