The aggregate foreign investment (FDI, FII and NRI) cannot exceed 74 percent in private sector banks while the ceiling is at 20 percent for nationalized banks, State Bank of India and its associate banks. (Agencies)
"There is no proposal to hike the foreign investment ceiling in the banking sector ... No representation has been received in the recent past from the bankers or bank staff unions to hike FDI in banking sector," Minister of State for Finance Namo Narain Meena said in a written reply in Lok Sabha.
As regards the FDI limit in insurance sector, he said the government introduced the Insurance Laws Amendment Bill, 2008 in Parliament to increase it from 26 percent to 49 percent.
Replying to another question, Meena said the penetration of life insurance in India has increased from 2.15 percent in 2001 to 3.17 percent in 2017 which is above Brazil, Russia, Malaysia, Pakistan, China, Sri Lanka, Australia and Germany.
However, the penetration is below France, Switzerland, the UK, the US, Japan, Singapore, South Korea, Taiwan and Hong Kong.
Insurance coverage in a country is generally measured by insurance penetration, which is ratio of premium underwritten in a given year to the Gross Domestic Product (GDP).
To another query, Meena said Central Bureau of Investigation has registered 479 cases against 686 bank officials of public sector banks and others related to bank frauds between 2010 and April, 2013.
Also, departmental inquiries have been initiated against 26,584 bank employees.
The aggregate foreign investment (FDI, FII and NRI) cannot exceed 74 percent in private sector banks while the ceiling is at 20 percent for nationalized banks, State Bank of India and its associate banks.