FDI guidelines not a wall in banks' NBFC investments: Govt
Published on Thu, Jul 15, 2010 at 07:42 | Source : CNBC-TV18
Updated at Thu, Jul 15, 2010 at 11:02
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FDI guidelines not a wall in banks' NBFC investments: Govt
When Press Notes 2, 3, and 4 were released in 2009, it created a lot of controversy as many banks like ICICI and HDFC were treated as foreign-owned and Indian-controlled entities.
When Press Notes 2, 3, and 4 were released in 2009, it created a lot of controversy as many banks like ICICI and HDFC were treated as foreign-owned and Indian-controlled entities. The industry believed that the new FDI guidelines came in the way of downstream investments of the banks.
Yesterday, RP Singh, Secretary, Department of Industrial Policy & Promotion, clarified that downstream investments of banks in NBFCs and insurance companies will not be impacted by the guidelines on foreign direct investments. "NBFCs are 100% allowed. They don't suffer from any handicap there. On insurance, these press notes don't apply. Downstream press notes too don't apply to insurance, so there is no problem at all."
