BANKING GENERAL KNOWLEDGE
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Question
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The Reserve Bank hiked the limit for foreign investment in Asset Reconstruction Companies (ARCs) from the earlier cap of 49 percent to?
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74%
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47%
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57%
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72%
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Explanation:
Detailed explanation-1: -Detailed Solution. The government has permitted 20% of Foreign Direct Investment in Banking-public Sector.
Detailed explanation-2: -Investments in Asset Reconstruction Companies (ARCs) FDI is restricted to 49% of the paid up capital of the ARC.
Detailed explanation-3: -FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses.
Detailed explanation-4: -Such applications will be considered by RBI in consultation with Insurance Regulatory and Development Authority (IRDA). Foreign banks having branch presence in India, are eligible for FDI in the private sector banks subject to the overall cap of 49% mentioned above with the approval of RBI.
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