Foreign direct investment up to 49 per cent has been allowed in private sector banks and up to 20 per cent in nationalised banks. Guidelines have been issued for the entry of banks into insurance business either as joint venture participants or to take up strategic investment for providing infrastructure and services support without any contingent liability. VI.
Issues in supervision and regulation  Recent international financial developments have underscored the critical role of the regulatory and supervisory function in ensuring the health and stability of the financial system.