Banks should be permitted one broking licence: IRDA

India Infoline News Service | Mumbai |

Banks selling insurance products would enhance penetration, while there could be conflict of interest when a bank forms a broking firm as they are also promoters of some insurers

IRDA (Insurance Regulatory and Development Authority) on Tuesday said that a corporate bank should be allowed to have only one insurance broking licence, according to a report.

The IRDA panel, constituted to review the IRDA Broking Regulations 2002, submitted its report two weeks back.

Currently, banks are allowed to be corporate agent for only one insurer and there has been a demand to allow them to sell products of more insurers. The panel has submitted its views to the regulator and is waiting for its approval, the report added.

Banks selling insurance products would enhance penetration, while there could be conflict of interest when a bank forms a broking firm as they are also promoters of some insurance companies, the panel added.

“The Reserve Bank of India’s position on banks as broking firm also needs to be ascertained as it is the primary regulator of banks,’’ it further said.


 

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