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?
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.
