According to the FDI Policy of the Government of India (2012), the FDI in banks is limited to
20% in Nationalised Banks and 74% in Private Sector Banks.
Under the Consolidated FDI Policy (2012) the cap on foreign investment (FDI and portfolio investment together) in nationalised (public sector) banks was 20%, and it required government approval.
In private sector banks foreign investment was allowed up to 74%: up to 49% under the automatic route and beyond 49% up to 74% with government approval, subject to RBI guidelines on ownership and governance.
The other combinations misstate either limit; a 49% cap applied only to the automatic route in private banks, not to nationalised banks, and 16% or 51% were not the prescribed limits.
Hence, 20% in Nationalised Banks and 74% in Private Sector Banks.
Similar Questions
Match the items of List - I with List - II in terms of functions of a bank :
List - I List - II (Activities) (Functions) (a) Underwriting (i) Primary Functions (b) Transfer of funds (ii) Granting Advances (c) Overdraft (iii) Utility Functions (d) Recurring Deposits (iv) Agency Functions Codes :
(a) (b) (c) (d)
Interest earned by a depositor against a deposit with a commercial bank for custodial service :
Assertion (A) : Taking of deposits and granting of loans single out banks.
Reasoning (R) : Banks act as intermediaries when they mobilize savings from surplus units to shortage units in order to finance productive activities.
Codes :
The profitability of public-sector banks is low due to
(i) Over-cautions approach to lending
(ii) Reserve Bank Policies
(iii) High Overhead Costs
(iv) Social-sector lending
Identify the correct code :
Codes :
According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of
Match the items of List – I with List – II :
List – I List – II a. RBI Nationalization i. 1964 b. Imperial Bank Nationalization ii. 1949 c. Nationalization of 14 Commercial Banks iii. 1955 d. Establishment of IDBI iv. 1969 Identify the correct combination :
Codes :
a b c d
Select the major principles which banks strive to incorporate in their working from the following :
(a) Profitability
(b) Labour welfare
(c) Social welfare
(d) Safety
(e) HRD
(f) Liquidity
Codes :
Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Imposition of price _______ below the equilibrium price leads to excess _______.
- Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Codes :
