Tuesday, November 8 2005 15:24 Hrs (IST) - World Time -

Mumbai: The central banks of India and Pakistan have reached an agreement to allow setting up of two commercial bank branches in each other's country.

The specific banks to be permitted to open the branches would be mutually agreed upon by the Reserve Bank of India and the State Bank of Pakistan, keeping in view their respective regulatory policies and procedures, RBI said in a statement here yesterday (Nov 08, 2005).

The licensing of subsequent or additional branches of the banks would be decided by RBI and SBP as per their policy and licensing norms applicable to foreign banks from time to time, it added.

RBI Governor Y V Reddy had visited Karachi on May 18, 2005 and SBP Governor Ishrat Husain had reciprocated by visiting Mumbai on October 8.