Centre mulls permitting 100% foreign investment in private banks

Proposal to increase ceiling to 49% in public sector banks

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%, a top government official said.

“The finance ministry has suggested it (hiking foreign direct investment ceiling). We are formulating a response. The Reserve Bank of India (RBI) may have some objections,” said the official.

Rajiv Kumar, secretary, Department of Financial Services, Finance Ministry, did not respond to a text message.

According to the government’s policy, foreign investors — foreign