India’s government is planning to raise the cap on direct foreign investment in state-run banks to 49% — up from the current limit of around 20% — according to a source close to policy discussions. The proposal aims to attract more foreign capital into India’s banking sector while preserving government majority ownership. Twelve large public-sector banks hold combined assets of ₹171 trillion (~US$1.95 trillion). If finalised, the move would mark one of India’s biggest open-up steps in the financial-sector reform agenda.