New Delhi: Foreign Direct Investment (FDI) limit in private banks will be raised to at least 74 per cent and a clear guideline is expected by December end, a senior Finance Ministry official said today (Nov 21).

The Government will also clarify the limit of Foreign Institutional Investment (FII) in the guidelines.

"The FDI limit in private banks would be at least 74 per cent, as against the present limit of 49 per cent. The FII limit would also be clarified," the official said.

The Government is likely to come up with the guidelines on FDI and FII holding within four to six weeks, he said, adding non-resident Indians (NRIs) and overseas corporate bodies (OCBs) will be part of the FDI.

Apart from the FDI limit, the Government is also hoping that the Parliament would approve the amendments to the Banking Regulation Act by this fiscal.

The Parliamentary Standing Committee on Finance has already cleared the Bill.

The Bill would ensure voting rights proportionate to the shareholding of foreign players.

The FDI limit and voting rights relaxation was been sought by the foreign banks to increase their presence in the country.

PTI