Curious welcome
The government wants foreign investment. Does the central bank?
IN BANKERS' eyes, an announcement this month by India's central bank, the Reserve Bank of India (RBI), has done the country no favours. To many, it looks hostile to foreign investment. Privately, both Indian and foreign bankers have criticised the proposals, because they broadly limit investors in Indian banks to stakes of between 5% and 10%—just when several banks need substantial amounts of fresh foreign capital and the new government, headed by Manmohan Singh, a former governor of the RBI, is keen to attract foreign direct investment.
This article appeared in the Finance & economics section of the print edition under the headline “Curious welcome”
From the July 24th 2004 edition
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