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Banking Correspondents model for insurance sector suggested
- Insurance Regulatory and Development authority Chairman J. Hari Narayan on Wednesday said that continuous engagement was necessary to promote micro insurance in the country besides exploring the Banking Correspondents model for increasing the reach of insurance products in rural areas.
- He also added that there was a lack of efficient delivery of the products by the industry and hence rural and social sector obligations might suffer.
Cabinet nod for 26 % FDI in pension sector
- The Union Cabinet on Wednesday agreed to partially open the gates to foreign direct investment (FDI) in the pension sector to the extent of 26 per cent, as is now available in the area of insurance, but decided not to mention any sectoral cap in the proposed legislation.
- The provision with regard to the FDI cap for the pension sector is proposed to be incorporated in the regulations once the Pension Fund Regulatory and Development Authority Bill, 2011, is enacted.
- Essentially, the PFRDA Bill provides for the setting up of a statutory authority to undertake promotional, developmental and regulatory functions with regard to pension funds.
- once the FDI caps are mentioned in the regulations, the government would find it easier to modify the ceilings through an executive order, as and when required.
