CENTRE RUBS OUT RUMOURS OF HIGHER FDI CAP IN PSBS

The government on Tuesday emphatically brushed aside speculation surrounding a potential liberalisation of foreign investment rules for public sector banks.

- Business Desk

Minister of State for Finance Pankaj Chaudhary made it unequivocally clear that no proposal is being examined to lift the FDI ceiling from the current 20% to 49%, signalling a firm policy stance amid recurring market chatter.

The FDI limit in PSBs and private sector banks is 20 per cent and 74 per cent, respectively. In case of private sector banks, up to 49 per cent of FDI is through the automatic route and beyond 49 per cent and up to 74 per cent, government route is applicable.