All 10 Indian banks with operations in the UK will soon be subject to new rules to increase individual accountability from next year. Regulators the Financial Conduct Authority and the Bank of England’s Prudential Regulatory Authority released “near final rules” on Thursday to bolster the governance of the UK branches of foreign banks.

In July the regulators had released the rules toughening the regulation of UK banks as well as the more heavily regulated subsidiaries of foreign banks in the UK previously recommended by a parliamentary commission.

Overseas banks in the UK can either operate as branches or subsidiaries. Branches have been subject to increasing levels of supervision, and were forced to overhaul their structure last year, as part of British efforts to shore up the banking sector and ensure that it will be less vulnerable to external shocks as they have been in the past. According to the latest data from the Bank of England, six Indian banks operate branches in the UK — Bank of Baroda, Bank of India, Canara Bank, State Bank of India, Syndicate Bank and the Export-Import Bank of India — and four have subsidiaries — Axis Bank, ICICI Bank, Punjab National Bank and Union Bank of India.

The new rules cover senior managers and will hold top people at a branch accountable for misconduct that falls under their remit, as well as a certification regime to ensure all those working at a bank meet certain standards.

However, the rules governing branches remain less onerous than those governing UK banks.

“Today’s rules are the latest changes aimed at embedding personal accountability in the culture of financial services and are a crucial step in rebuilding public trust,” said FCA CEO Martin Wheatley.

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