Foreign Ownership in Indian Banks: A Balancing Act

Reserve Bank Governor Sanjay Malhotra emphasized the stability in foreign ownership limits in banks. Currently set at 15%, exceptions have been made but no immediate changes are planned. RBI considers revisiting ownership criteria amid India's growth needs, aiming for a balance between openness and trust in management.

Governor Sanjay Malhotra of the Reserve Bank of India clarified that while the current cap on foreign ownership in banks remains at 15%, the central bank may reassess ownership structures in the future.

Addressing reporters, Malhotra noted India's growing need for banks with trustworthy managers, implying potential future policy shifts.

Despite exceptions like CSB Bank and Yes Bank, any substantial change to foreign ownership limits is not anticipated soon, as the RBI assesses economic benefits.

(With inputs from agencies.)