| Decks cleared for 74% FDI in weak private banks |
| Anindita Dey / Mumbai March 16, 2006 |
| In a move that clears the decks for 74 per cent foreign direct investment in weak private banks, the Parliamentary Standing Committee on Finance has approved the necessary amendment to the Banking Regulation Act. B C Khanduri, chairman of the committee, said the 74 per cent FDI limit has been approved along with a proportionate hike in voting rights. At present, the voting rights is capped at 10 per cent irrespective of the FDI limit, now at 49 per cent. The Reserve Bank of India had submitted the draft proposals in February 2005 for the committee |
