Govt's Big Bank Reform: FDI Hike Plan to 49% Sparks Fierce Debate

The top story is the government's proposal to increase the Foreign Direct Investment (FDI) limit in Public Sector Banks (PSBs) from 20% to 49%, a move that has drawn sharp, conflicting views from market experts like Hemendra Hazari and Dharmesh Kanth. Banking industry expert Hemendra Hazari stated, 'There is no economic rationale for this move.' In contrast, other analysts believe the reform will lead to better valuations and increased competition, benefiting consumers. The news has already spurred market excitement, with the PSU Bank index trending higher and Canara Bank's stock hitting a 52-week high. Also in focus, the Centre has approved seven projects worth over ₹5,500 crores under the electronics component manufacturing scheme, and Paytm has enabled UPI payments for NRIs using international mobile numbers.