RBI would undertake a "wholesome review regarding the road map" to liberalise norms for foreign banks in the country, its Deputy Governor V Leeladhar said on Tuesday.

The first phase of the roadmap for entry of foreign banks was coming to an end in March 2009, and "there is a review to be made; wholesome review to be made", Leeladhar said in response to questions on the sidelines of a function in Bangalore.

Under the first phase of liberalisation in the banking sector, allowed by the RBI, foreign banks can establish their presence by way of setting up a wholly-owned subsidiary or converting existing branches into a 100 per cent subsidiary.

The first phase of liberalisation, initiated in 2005, also aimed at giving a chance to the domestic banks to strengthen their presence and financial positions through consolidation and reform process.

To a question, Leeladhar said the growth of advances by Indian banks was 26 per cent year-on-year in the July 2007-June 2008 period. Credit growth of banks so far (in the current financial year) had been healthy, he added.