(a) whether the Government is proposing to allow up to 74 percent
Foreign Direct Investment (FDI) in public sector banks/private banks;
(b) if so, the details thereof;
(c) whether the Government has prepared any guidelines in this regard; and
(d) if so, the details thereof?
FINANCE MINISTER (SHRIP. CHIDAMBARAM)
(a) to (d): A statement is laid on the Table of the House.
STATEMENT FOR LOK SABHA STARRED QUESTION NO.225 FOR 18th MARCH 2005
REGARDING FDI IN BANKS TABLED BY SHRI D. VITTAL RAO AND SHRI MOHAN SINGH
(a) & (b): In pursuance of a Budget announcement made on February 28,
2003, the Government issued a notification on March 5, 2004 raising the Foreign
Direct Investment (FDI) limit in private Banks from 49% to 74%. This includes
investment by Foreign Institutional Investors (Fll). No change has
however, been made in the existing statutory ceiling of20% FDI in public
sector banks.
(c) & (d): To implement the above decision, Reserve Bank of India has
announced a Road Map on 28.02.2005 for presence of foreign banks in
India. This Road map is available on RBI`s website i.e. www.rbi.org.in/notification.