RBI notifies government's decision on FDI in multi-brand retail, civil aviation, broadcasting and power exchanges

MUMBAI: The Reserve Bank today notified the government's decision to allow FDI in multi-brand retail, civil aviation, broadcasting and power exchanges.

"The extant Foreign Direct Investment (FDI) policy has been reviewed and it has now been decided...FDI up to 51 per cent is now permitted in multi-brand retail trading," the central bank said in a notification.

Yesterday, the Department of Industrial Policy and Promotion (DIPP) in a notification had said, "51 per cent FDI in multi-brand retailing, in all products, will be permitted..."

The Centre has also allowed foreign airlines to buy 49 per cent stake in the domestic carriers, besides permitting 49 per cent FDI in power exchanges.

It has also increased foreign equity cap to 74 per cent in services like teleports, DTH, Multi System Operators (MSOs) operating at national, state or district level which were involved in digitisation and mobile TV and mobile TV.

Of these, 49 per cent foreign investment was allowed through automatic route and up to 74 per cent would be allowed through the government route.

RBI further said the necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 are being notified separately.