Promoters Can Hold 49% In Private Banks

The Reserve Bank of India (RBI) has allowed promoters of private banks to hold up to 49 per cent stake, revising its earlier stipulation pegging the maximum holding at 40 per cent.

The move levels the playing fields for domestic promoters of private banks and foreign banks, which have already been allowed to hold up to a 49 per cent stake in private banks.

In February 2002, the RBI allowed foreign direct investment up to 49 per cent, from all sources, in private banks under the automatic route.