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 15% of a private sector lender in India, with the ownership of non-regulated and non-diversified financial institutions capped at as much as 40%.
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%.