The Central Bank of Kenya (CBK) has cancelled a licence given to the Central Bank of India (CBI) to operate a representative office in the country following the latter’s decision to close operations in international markets.
The CBI, a commercial bank, was in 2013 awarded a licence to open a representative office in Nairobi as the Indian lender sought financial deals in the region.
Representative offices represent a bank or any other financial institution incorporated outside the country, holding a valid licence obtained from the relevant authorities who also oversee its operations.
The Mumbai-based bank has decided to close all its foreign operations, forcing the CBK to cancel its local licence.
“The CBK announces the cancellation of the authority granted to the CBI to operate a representative office in Kenya,” the regulator said in a statement Friday.
“This follows a strategic decision taken by CBI to close its foreign representative offices including the one in Kenya.”
FirstRand Bank Limited, Bank of China Limited, HDFC Bank Limited, Bank of Kigali, Mauritius Commercial Bank and Rabobank Nederland are the other banks that operate representative offices in Kenya.