According to the FDI Policy of the Government of India (2012), the FDI in banks is limited to

Under the Consolidated FDI Policy of the Government of India (2012), the statutory ceiling on Foreign Direct Investment (FDI) in the banking sector was capped at '20% in Nationalised Banks and 74% in Private Sector Banks.' (under the Banking Companies (Acquisition and Transfer of Undertakings) Acts and FEMA regulations).