Question

Consider the following statements: 

1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 percent of the paid up capital 

2. Foreign Direct Investment upto 49 percent from all sources is permitted in private sector banks in India under the automatic route

Which of these statements is/are correct?

(a) Only 1 (b) Only 2 (c) Both 1 and 3 (d) Neither 1 nor 2

Answer 1

(d) FDI in private sector banks is raised to 74% under the automatic route including investment by FIIs.