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Govt to hike FDI in private banks to at least 74% by Dec end
New Delhi, Nov 21: Foreign direct investment limit in private banks will be raised to at least 74 per cent and a clear guideline is expected by December end, a senior Finance Ministry official said here today.
New Delhi, Nov 21: Foreign direct investment limit
in private banks will be raised to at least 74 per cent and a
clear guideline is expected by December end, a senior Finance
Ministry official said here today.
The government will also clarify the limit of foreign
institutional investment (FII) in the guidelines.
"The FDI limit in private banks would be at least 74 per cent as against the present limit of 49 per cent. The FII limit would also be clarified," the official said.
The government is likely to come up with the guidelines on FDI and FII holding within 4-6 weeks, he said, adding NRI and OCBs will be part of the FDI.
Apart from the FDI limit, the government is also hoping that the amendments to the banking regulation act is approved by Parliament by this fiscal.
The parliamentary standing committee on finance has already cleared the bill.
The bill would ensure voting rights proportionate to the shareholding of foreign players.
The FDI limit and voting rights relaxation was been sought by the foreign banks to increase their presence in the country.
Bureau Report
"The FDI limit in private banks would be at least 74 per cent as against the present limit of 49 per cent. The FII limit would also be clarified," the official said.
The government is likely to come up with the guidelines on FDI and FII holding within 4-6 weeks, he said, adding NRI and OCBs will be part of the FDI.
Apart from the FDI limit, the government is also hoping that the amendments to the banking regulation act is approved by Parliament by this fiscal.
The parliamentary standing committee on finance has already cleared the bill.
The bill would ensure voting rights proportionate to the shareholding of foreign players.
The FDI limit and voting rights relaxation was been sought by the foreign banks to increase their presence in the country.
Bureau Report