On Friday, Swiss US financial services group UBS AG surrendered its banking license in India. This was after lobbying hard to own a bank in the country and battling several allegations of money laundering. The exit was during the time when the Indian business houses sought after RBI's permission to set up banks.
The decision was driven after reassessment of business strategy. New regulations and stringent capital rules are other factors that made UBS AG exit the Indian banking business.
On the other hand, UBS AG would still continue its operations in investment banking and equities. The operation will be under the name UBS Securities India Private Ltd.
UBS Securities India Private Ltd would operate in the country as a subsidiary of UBS AG.
Through a representative office, chances are the group would apply for a differentiated banking license. This is needed to pursue wealth management business.
A UBS representative declined to give comment on said decision.
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