The Reserve Bank of India (RBI) decided to allow foreign investment up to 100 per cent under the automatic route in ‘other financial services’.

• Foreign investment in an activity that is regulated by an Act will be restricted to foreign direct investment (FDI) limits. Hence, sectors such as insurance, which already have pre-defined FDI limit (49 per cent in insurance) will continue to follow that.
• ‘Other financial services’ will include activities which are regulated by any financial sector regulator, including the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority, National Housing Bank.