Banking regulator, Reserve Bank of India has received applications from 18 foreign banks which are interested to gain a license to bank in India. The applications are currently under process. The banks intend to set up representative offices in the country as well as open branches across the nation.

"As on date, applications by RBI from 18 foreign banks for opening maiden branch/Representative Office are under various stages of progress", Minister of State for Finance Namo Narain Meena said as a reply to the Rajya Sabha.

"As on June 30, 2010 more than 300 foreign bank branches are present in the country," Meena said.

In response to the query that foreign banks, if allowed to open branches in India would hamper the business and operations of domestic banks, he said that the discussion paper pertaining to guidelines set for new banking licenses is under preparation by banking regulator RBI. The paper would be taking into consideration, the impact of the above query too.

The discussion paper is expected to come this month.