New Delhi, July 4:  With an aim to bolster ties between India and its neighbouring nation China, the Reserve Bank of India (RBI) has issued a licence to Bank of China to operate in India. According to a tweet by ANI, this commitment was made by Prime Minister Narendra Modi to the Chinese leadership. Reports inform that the security clearance for the branch had been given sometime before the Modi-Xi meeting in June this year.

Once the RBI licence is issued, the 106-year-old Bank of China will open a branch in India. According to reports, the security clearances for the bank have been given and a notification from the RBI is expected soon.

Established in 1912, the Bank of China has served China's central bank along with international exchange and is believed to be the oldest Chinese bank.

The Bank of China is listed on the Hong Kong and Shanghai stock exchanges and has a market capitalisation of $158.6 billion. It will be the second Chinese bank to secure a licence to open a branch in India as Industrial and Commercial Bank of China (ICBC) already runs one branch in Mumbai.

(The above story first appeared on LatestLY on Jul 04, 2018 11:33 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).