What exact measures and policies is India planning to implement in order to further bring in private sector investment so as to improve and expand its infrastructure?
Reply: India has put in place an attractive policy on FDI, under which FDI, up to 100%, on the automatic route, is permitted in almost all the infrastructure sectors.
(ii) Financial Services
(a) Banking
(Question 36: Page 141, paragraph 61)
In legal texts, foreign participation by investment is now allowed up to a threshold of 74% in private banks with government approval. The former level was 49%. Japan would like India to describe how many banks have foreign investment levels exceeding 49%.
Reply: Four out of 20 private sector banks had foreign investment levels exceeding 49% as on 30 June 2011.
(Question 37: Page 145, paragraph 75)
Does the newly established deposit insurance system (Deposit Insurance and Credit Guarantee Corporation) cover deposits made by foreign banks?
Reply: DICGC is the second oldest deposit insurance agency in the world and has been in operation since 1 January 1962. Our deposit insurance system covers deposits raised in India by foreign banks. Any deposits collected outside India are not insured by DICGC.