Presently, the RBI is not allowed to provide higher voting rights even in cases where a foreign investor buys a controlling stake in a private bank. (File photo of a Bank of Baroda branch in Nerul. Photographer: Vijay Sartape/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The central government is currently mulling major reforms in bank ownership, opening up the space for foreign investors and a higher threshold for rights. Proposals have been circulated in the higher offices of the government, discussing a new foreign direct investment limit for public sector lenders and reviewing the voting rights cap for owners, two people with knowledge of the matter told NDTV Profit on the condition of anonymity.

No firm decision has been made on the direction in which

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