Government Denies Raising FDI Limit for PSBs

The government has said that it is not thinking about increasing the foreign investment limit in public sector banks from 20% to 49%.

Right now, foreign investors can own up to 20% of public sector banks and up to 74% of private banks.

The government also said that the number of shares it owns in 12 public sector banks has not gone down since 2020, even though the percentage of shares has decreased in some cases because the banks have issued new shares.

This is to help the banks grow, meet rules, and reduce the government's financial burden.

Banks also need to have at least 25% of their shares owned by the public.

The government has a new policy for public sector companies, which includes banks, and it will decide whether to keep them under government control or consider privatization or merging them with other companies.