India charts roadmap for hiking FDI in private banks

Wednesday, 17 December 2003, 08:00 Hrs
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NEW DELHI: India is working out a roadmap to hike the cap on foreign direct investment (FDI) in domestic private banks, Finance Minister Jaswant Singh said Tuesday.

"Modalities for implementing the decision are being working out and instructions are expected to be issued thereafter," Singh said in a written statement in the Rajya Sabha, the upper house of parliament.

He said the government had taken an "in principle decision" to enhance the limit on FDI in banking companies to facilitate setting up of subsidiaries by foreign banks and to invite investment in private sector banks.

According to the existing rules, foreign investors are allowed a maximum 49 percent stake in domestic private sector banks. The government reportedly plans to raise this to 74 percent.

The minister said the increase would not impact on "ownership control and regulation" of state-owned banks.

Source: IANS
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