In terms of the Press Note No.2 (2004 Series) issued by the Ministry of Commerce and Industry on March 5, 2004, the FDI limit in private sector banks was raised to 74% under the automatic route, including the investment made by FIIs. Foreign banks, according to the Press Note, will be permitted to have either branches or subsidiaries, not both.
It has been successful in discharging its aim by adjusting its strategic goals in the changing environment as well as enhancing collaboration with other global financial stakeholders in general and IMF, BIS, Bank of England, Bundes Bank and CEMLA in particular.