RBI, IRDAI nod must for FDI in bank-led insurance

Applications for Foreign Direct Investment in an insurance company promoted by a private bank would be cleared by the RBI and IRDAI to ensure that the 74% limit of overseas investment is not breached.
The changes took effect following amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, as per the gazette notification issued by the Finance Ministry on August 19.
“These rules may be called the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2021,” it said.
In March, Parliament passed a bill to raise the foreign direct investment (FDI) limit in the insurance sector from 49% to 74%. The Insurance Act, 1938 was last amended in 2015, raising the limit to 49%, resulting in foreign capital inflow of ?26,000 crore over 5 years.
“Applications for foreign direct investment in private banks having joint venture or subsidiary in insurance may be addressed to the Reserve Bank for consideration in consultation with the Insurance Regulatory and Development Authority of India (IRDAI),” to ensure that the foreign investment limit is not breached, the notification said.
India has attracted highest ever total FDI inflow of US$ 81.72 billion during the financial year 2020-21 and it is 10% higher as compared to the last financial year 2019-20 (US$ 74.39 billion).

Source: TH

Join Our Telegram

Afghanistan Civil War 2021

Hydrocarbon Vision 2030 for Northeast India

India’s Indo-Pacific Oceans Initiative (IPOI) UPSC GS-2 INDO PACIFIC – IR/PSIR

20 Nov, 25
SHARE

India’s Indo-Pacific Oceans Initiative (IPOI) UPSC GS-2 INDO PACIFIC – IR/PSIR IPOI is India’s open, voluntary and non-treaty-based maritime initiative for building a free, open, inclusive and rules-based Indo-Pacific through practical cooperation. Why in News? India’s Indo-Pacific Oceans Ini

AI Impact Summit 2026 UPSC GS-3 S&T PT-MAINS

19 May, 26
SHARE

AI Impact Summit 2026 UPSC GS-3 S&T PT-MAINS The India-AI Impact Summit 2026 positioned India as a Global South leader by shifting global AI debate from only AI safety and regulation to AI for development, inclusion and real-world impact. Why in News? India hosted the India-AI Impact Summit 2026 at B

Hong Kong Convention for Safe Ship Recycling UPSC GS-3 ENVIRONMENT PT-MAINS

27 Jun, 25
SHARE

Hong Kong Convention for Safe Ship Recycling UPSC GS-3 ENVIRONMENT PT-MAINS The Hong Kong International Convention, 2009 is an IMO treaty that ensures ships are recycled safely without unnecessary risk to human health, worker safety and the environment. Why in News? The Hong Kong Convention entered into force on 26 June 2

LeadIT 2.0: Leadership Group for Industry Transition COP28 UPSC GS-2 IR GS-3 S&T

14 Nov, 23
SHARE

LeadIT 2.0: Leadership Group for Industry Transition UPSC GS-2 IR GS-3 S&T LeadIT 2.0 is the second phase of the India-Sweden-led global initiative to support low-carbon transition in hard-to-abate industrial sectors. Why in News? The second phase of LeadIT was announced at the LeadIT Summit 2023, ho

India-EFTA Trade and Economic Partnership Agreement UPSC GS-2 IR/PSIR

03 Sep, 25
SHARE

India-EFTA Trade and Economic Partnership Agreement UPSC GS-2 IR/PSIR The India-EFTA TEPA is a comprehensive trade pact between India and four non-EU European countries — Iceland, Liechtenstein, Norway and Switzerland — aimed at boosting trade, investment, jobs, services, technology and supply-chain resilience. Wh