Government to raise FDI cap in private banks
By Our Banking Bureau | 17 Dec 2003
New Delhi: The Finance Minister, Mr Jaswant Singh, has said that the Government has in principle decided to enhance the limit of foreign direct investment (FDI) in banking companies.
In
a reply to Parliament, Mr Singh said the hike in FDI
would not have any impact in terms of ownership control
and regulation of nationalised banks. However, he said
the FDI hike would allow foreign banks to set up subsidiaries
and would also invite greater foreign investment in
private banks.
The Finance Minister did not indicate any fresh limit for FDI in the sector that currently stands at 49 per cent. The Government had recently said that it was committed to raise the FDI limit to 74 per cent as stated in the Budget for 2003-04.