New Delhi, July 24 -- The Indian government is inclined to retain the voting rights of investors in public-sector banks at 10% even as it is in discussions with the Reserve Bank of India (RBI) to review foreign investment limits in these banks to bring in more capital, two persons aware of the matter said.

The government is mandated to hold a 51% stake in PSBs, with foreign investment capped at 20%. But irrespective of how much an individual or institution holds in a PSBs, their voting rights are capped at 10%.

"The voting rights in PSBs may remain at 10% even if the government and regulators decide to raise foreign investment limits beyond 20%. This would retain the government character of these banks, as with limited voting rights, pr...