The Union government is holding talks to increase foreign investment limits in private sector banks to 100%, from 74% at present. It is also considering a hike in the foreign investment cap for public sector banks (PSBs), from 20% to 49%.<\/p>\n
According to the government\u2019s policy, foreign investors \u2014 foreign direct investment, foreign institutional investors, and non-resident Indians combined \u2014 can invest up to 74% of paid-up capital in private sector banks. Up to 49% foreign investment is allowed under the automatic route; such investments between 49% and 74% require the government\u2019s approbation under the present norms. This is, however, not the first time that the government is exploring a proposal to increase foreign investment limits to 100% in private banks. The RBI had in 2015 reportedly raised objections over the Union government\u2019s proposal to increase the limit to 100% for private sector banks due to \u201cregulatory problems\u201d.<\/p>\n
[Source: The Business Standard]<\/p>\n","protected":false},"excerpt":{"rendered":"
The Union government is holding talks to increase foreign investment limits in private sector banks to 100%, from 74% at present. It <\/p>\n","protected":false},"author":91,"featured_media":151784,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8051,2],"tags":[28664,28654],"class_list":["post-191214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business_news","category-news","tag-foreign-investment","tag-private-banks"],"yoast_head":"\n