RBI relaxes FDI norms for credit information companies

NEW DELHI, Nov. 20, 2008
Col. Surdul Singh,


The Reserve Bank on Thursday relaxed the norms for foreign direct investment (FDI) in credit information companies by allowing reputed overseas firms to pick up 49 percent stake in Indian outfits.

"The Reserve Bank will now consider allowing FDI up to 49 percent where the investor is a company with an established track record of running a Credit Information Bureau in a well regulated environment," the apex bank said in a release on Thursday.

Higher FDI would be allowed to a foreign entity provided no shareholder in the company holds over 10 percent voting rights, it added.

The foreign company, the RBI said, should preferably be a listed company on a recognised stock exchange.

Earlier in July, the RBI had fixed a ceiling of 10 percent on investments made under the FDI scheme to ensure well diversified ownership of banks and other entities in the financial sector.