Consider the following statements: 1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 per cent of the paid up capital. 2. Foreign Direct Investment up to 49 per cent from all sources is permitted in private sector banks in India under the automatic route. Which to these statements is/are correct?

Statement 1 is incorrect because the Reserve Bank of India allows the cap on long term promoter shareholding in private sector banks to be 26 per cent of the paid up voting equity share capital of the bank, not 49 per cent. Statement 2 is incorrect because the current Foreign Direct Investment policy allows for a limit of up to 74 per cent in private sector banks. Within this limit, investment up to 49 per cent is permitted under the automatic route, but any investment beyond 49 per cent and up to 74 per cent requires government approval. Therefore, the statement that up to 49 per cent is the total limit or that the entire permitted amount is under the automatic route is misleading or inaccurate depending on the context of total investment caps. Since both statements provided in the question are incorrect, the correct option is D.