Large industrial houses as per existing policy will be permitted strategic investment in banks up to 10 per cent subject to fulfilling the other criteria. 7.
While guidelines have already been issued to banks and Fis in India to minimize cross holding to 5 per cent, symmetrically, the draft guidelines require foreign banks operating in India to restrict their acquisition (either directly or through any entity in the group) of shareholding in Indian banks to 5 per cent . 8.