The Reserve Bank of India (RBI) is allowing more foreign banks higher shareholdings in private sector banks, under exceptional circumstances, as part of its amendments to the guidelines. RBI has also allowed a maximum share capital for non-banking financial companies (NBFCs) and limited their shareholding from 49% to 49%.
The Reserve Bank of India (RBI) is allowing more foreign banks higher shareholdings in private sector banks, under exceptional circumstances, as part of its amendments to the guidelines. Regulated, well-diversified, listed and government run foreign financial institutions will now be allowed to own as much as 40% of a private sector lender in India, with the ownership of non-regulated and non-diversified financial institutions capped at 15%.