BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the maximum ceiling on Foreign Direct Investment (FDI) for investment in the equity of Public Sector Banks in India?
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20%
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26%
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49%
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51%
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Explanation:
Detailed explanation-1: -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.
Detailed explanation-2: -FDI is restricted to 49% of the paid up capital of the ARC. However, FIIs registered with SEBI can invest in the Security Receipts (SRs) issued by ARCs registered with RBI.
Detailed explanation-3: -(a) FDI limit in Private Sector Banks is raised to 74 per cent under the automatic route including investment by FIls.
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