Government Considers Raising FDI Caps for PSU Banks in Upcoming Budget

0 min read Updated on 30 Jan 2026, 11:30 AM

Reviewed by

Radhika SScanX News Team

Overview

Government is exploring plans to increase FDI caps for PSU banks in the upcoming budget. This potential policy reform could enhance foreign capital access for state-owned banks and represents a significant shift in banking sector regulations.

*this image is generated using AI for illustrative purposes only.

The government is reportedly considering plans to increase foreign direct investment (FDI) caps for public sector undertaking (PSU) banks as part of the upcoming budget announcement.

Policy Reform Initiative

This potential policy change represents a significant development in the banking sector's regulatory framework. The move suggests the government's intent to attract greater foreign capital participation in state-owned banking institutions.

Implications for Banking Sector

If implemented, the increased FDI caps could provide PSU banks with enhanced access to foreign capital and expertise. This policy shift would mark a notable change in the approach toward foreign investment in the public banking sector.

The consideration of higher FDI limits indicates the government's focus on strengthening the financial position of state-owned banks through increased foreign participation. Such measures could potentially contribute to the modernization and capitalization of PSU banks.

India's 10-Year Government Bond Yield Rises to 6.7127%

0 min read Updated on 29 Jan 2026, 09:58 AM

Reviewed by

Radhika SScanX News Team

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Overview

India's 10-year government bond yield increased to 6.7127% from the previous close of 6.7026%, representing a marginal uptick of approximately 1 basis point. This movement reflects ongoing market dynamics in India's government securities market and indicates a slight increase in government borrowing costs.

*this image is generated using AI for illustrative purposes only.

India's benchmark 10-year government bond yield has registered a marginal increase, moving to 6.7127% from the previous close of 6.7026%. This uptick represents a movement of approximately 1 basis point in the yield.

Bond Yield Movement

The current yield movement reflects the ongoing dynamics in India's government securities market. Government bond yields serve as a crucial benchmark for various financial instruments and indicate the cost of government borrowing.

Parameter:	Details
Current Yield:	6.7127%
Previous Close:	6.7026%
Change:	+0.0101%

Market Significance

The 10-year government bond yield is considered a key indicator in the Indian financial markets, serving as a reference point for pricing various debt instruments and influencing borrowing costs across the economy. The marginal increase suggests a slight shift in market sentiment regarding government securities.

This yield movement occurs within the broader context of India's debt market operations, where government securities play a fundamental role in monetary policy transmission and overall market liquidity management.