As per the existing FDI policy - Foreign investment in other financial services (i.e. other than those indicated in the policy like NBFC etc) would require prior approval of the Government.
Today, RBI issued a notification stating that it has been decided, in consultation with the Government of India, to allow foreign investment up to 100% under the automatic route in ‘Other Financial Services’.
However, such foreign investment shall be subject to conditionalities, including minimum capitalisation norms, as specified by the concerned Regulator/ Government Agency viz. Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, Pension Fund Regulatory and Development Authority, National Housing Bank or any other financial sector regulator as may be notified by the Government of India in this regard.
The said notification of RBI is reproduced as under: