FDI In Banks

India's outward FDI commitments rose marginally to $3.51 billion in July 2025 but declined sharply compared to June 2025, according to RBI data.

Currently, 20 per cent foreign investment is permitted in PSU banks under government approval route

The government is considering increasing the foreign direct investment limit to 100% for private lenders and 49% for public sector banks

There is discussion within the Union government on the idea of raising the foreign direct investment (FDI) limit in private sector banks from the present 74 per cent to 100 per cent. Also, on a hike in the foreign investment cap for public sector banks from 20 per cent to 49 per cent, sources said."The finance ministry had suggested it. We are formulating a response. The Reserve Bank of India (RBI) might have some objections," said a top government official, requesting anonymity. Rajiv Kumar, secretary, financial services, did not respond to a text message. Foreign investors - FDI, foreign institutional investors, non-resident Indians combined - can invest up to 74 per cent of paid-up capital in private banks. While up to 49 per cent is allowed under the automatic route, investment between 49 and 74 per cent requires the government's nod.Then finance minister Jaswant Singh had announced hiking of the foreign investment limit to 74 per cent in private banks in the Budget for 2003-04. ..