Delhi: The Finance Minister, Mr Jaswant Singh, has
said that the Government has in principle decided to
enhance the limit of foreign direct investment (FDI)
in banking companies.
a reply to Parliament, Mr Singh said the hike in FDI
would not have any impact in terms of ownership control
and regulation of nationalised banks. However, he said
the FDI hike would allow foreign banks to set up subsidiaries
and would also invite greater foreign investment in
Finance Minister did not indicate any fresh limit for
FDI in the sector that currently stands at 49 per cent.
The Government had recently said that it was committed
to raise the FDI limit to 74 per cent as stated in the
Budget for 2003-04.