RBI relaxes norms for UCBs to carry insurance distribution biz
The Reserve Bank on Friday relaxed norms for Urban Cooperative Banks to undertake the business of distributing insurance products as corporate agents without risk participation.
By PTI |
MUMBAI: The Reserve Bank on Friday relaxed norms for Urban Cooperative Banks to undertake the business of distributing insurance products as corporate agents without risk participation.
Pursuant to the RBI notification, UCBs with a minimum net worth of Rs 10 crore are permitted as corporate agents for insurance companies.
The RBI had in 2005 fixed a minimum networth of Rs 50 crore to undertake this business.
As announced in the Annual Policy Statement 2008-09, it has been decided to dispense with the minimum networth criteria for undertaking insurance business as corporate agent without risk participation for UCBs, with other conditions remaining unchanged, the notification said.
The central bank issued the notification following RBI Governor Y V Reddy's announcement.
In another notification, RBI increased the limit on individual housing loans from Rs 25 lakh to a maximum of Rs 50 lakh in respect of Tier-II UCBs.
Pursuant to the RBI notification, UCBs with a minimum net worth of Rs 10 crore are permitted as corporate agents for insurance companies.
The RBI had in 2005 fixed a minimum networth of Rs 50 crore to undertake this business.
As announced in the Annual Policy Statement 2008-09, it has been decided to dispense with the minimum networth criteria for undertaking insurance business as corporate agent without risk participation for UCBs, with other conditions remaining unchanged, the notification said.
The central bank issued the notification following RBI Governor Y V Reddy's announcement.
In another notification, RBI increased the limit on individual housing loans from Rs 25 lakh to a maximum of Rs 50 lakh in respect of Tier-II UCBs.
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