A major update on the proposal to increase the FDI limit in public sector banks, the Minister of State for Finance gave this answer in Parliament.:

News Topical, Digital Desk : The government has responded to a proposal to increase the foreign direct investment (FDI) limit in public sector banks. Minister of State for Finance Pankaj Chaudhary said on Tuesday that the government is not considering any proposal to increase the foreign direct investment (FDI) limit in public sector banks from the current 20 percent to 49 percent.

The foreign direct investment limits in public sector banks and private sector banks are 20 percent and 74 percent, respectively. In the case of private sector banks, FDI up to 49 percent is allowed through the automatic route, while above 49 percent and up to 74 percent is allowed through the government route.

Minister of State for Finance replied in Rajya Sabha
The Minister of State for Finance denied the question in the Rajya Sabha, asking whether the government has proposed raising the FDI limit in public sector banks to 49 percent. Responding to another question, Chaudhary said the central government's stake in 12 public sector banks (PSBs) has not decreased since 2020.