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What is the Foreign Direct Investment (FDI) limit permitted by government in Banking-public Sector?

What is the Foreign Direct Investment (FDI) limit permitted by government in Banking-public Sector? Correct Answer 20%

The correct answer is 20%

  • The government has permitted 20% of Foreign Direct Investment in Banking-public Sector.
  • Foreign investment involves investments of funds abroad in exchange for financial return. Foreign investment can be of two types: direct and portfolio investments.
  • A Foreign Direct Investment takes place when a company directly invests in properties such as plant and machinery in foreign countries with a view to undertaking production and marketing of goods and services in those countries.
  • A Foreign Portfolio Investment, on the other hand, is an investment that a company makes into another company by the way of acquiring shares or providing loans to the latter and earns income by way of dividends or interest on loans.
Sectors FDI Limit
Asset reconstruction Companies 100%
Banking-private Sector 74%
Banking-public Sector 20%
Insurance 49%
Pension Sector 49%
White Label ATM operations 100%

Related Questions

Foreign investment can be made through which of the following routes ? (i) Foreign Direct Investment (FDI) (ii) Foreign Portfolio Investment (FPI) (iii) Private Equity Investment (PEI) (iv) Foreign Venture Capital Investors (FVCI)  Choose the correct answer from the code given below : 
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