Why is the State Bank of India closing its Kolkata unit?

SBI is consolidating its treasury and forex operations in Mumbai, leading to the closure of its Global Markets Unit in Kolkata.

What is the role of the Global Markets Unit (GMU) in Kolkata?

The GMU in Kolkata, established in 2015, supports overseas financial operations and contributes to West Bengal's economic activities.

Has the RBI intervened in the SBI Kolkata unit closure?

A civil society forum has urged the RBI to intervene and prevent the closure without proper regulatory approval.

Home / Business and Economy / RBI Urged to Halt SBI's Kolkata Operations Closure

RBI Urged to Halt SBI's Kolkata Operations Closure

17 Jan

•

Summary

SBI issues one-month notice to vacate Kolkata premises.
Civil society forum seeks RBI intervention against closure.
Kolkata's Global Markets Unit supported overseas operations.

RBI Urged to Halt SBI's Kolkata Operations Closure

The State Bank of India (SBI) has initiated the process to close its Global Markets Unit (GMU) in Kolkata by issuing a one-month notice to vacate its premises in the Jeevan Sudha Building. This move aligns with SBI's strategic plan to consolidate its treasury and foreign exchange operations in Mumbai, impacting operations housed from the 11th to 16th floors of the central Kolkata building.

A civil society platform, the Bank Bachao Desh Bachao Manch (BBDBM), has formally requested the Reserve Bank of India (RBI) to intervene and prevent the closure. The BBDBM argues that any cessation of the GMU's operations without explicit regulatory approval would undermine the RBI's statutory authority and the established regulatory framework. The unit, established in 2015, has played a significant role in supporting international financial centers.

BBDBM asserts that the GMU Kolkata has been a vital contributor to West Bengal's economic landscape, fostering international banking activities and generating employment. The potential closure raises concerns about the loss of specialized banking functions and could diminish Kolkata's standing as a financial hub for eastern and northeastern India.