Foreign direct investment limit in private banks may be raised to at least 74 per cent and a clear guideline is expected by December end, a senior finance ministry official said in New Delhi on Friday.

The government will also clarify the limit of foreign institutional investment in the guidelines.

"The FDI limit in private banks would be at least 74 per cent as against the present limit of 49 per cent. The FII limit would also be clarified," the official said.

The government is likely to come up with the guidelines on FDI and FII holding within 4-6 weeks, he said, adding non-resident Indians and overseas corporate bodies would also be part of the FDI.

The government is also hoping that Parliament would approve the amendments to the Banking Regulation Act by this fiscal.

The parliamentary standing committee on finance has already cleared the Bill.

The Bill would ensure voting rights proportionate to the shareholding of foreign players.