LIC in negotiations with RBI for access to debt data via CRILC, says Siddhartha Mohanty

29 Dec 2023 , 10:17 AM

The state-owned insurer LIC is ‘in active negotiation’ with the Reserve Bank and is optimistic of gaining access to the central bank’s debt database CRILC, its chairman Siddhartha Mohanty said on Thursday, despite being the largest debt investor.

He also asked the RBI to correct this anomaly in order to assist it in weathering the dangers of its asset-liability mismatch.

Mohanty stated that he expects the Reserve Bank to make a good judgement soon because it is in active discussions with the regulator to gain access to the RBI-run Central Repository of Information on Large Credits (CRILC).

Because life insurance is a long-term commitment, an insurer’s liabilities are long-term but its assets are short-term, and the chairman stated that the insurer’s inability to obtain CRILC data is a risk.

The lack of access to CRILC tilts the balance against LIC because, despite being the largest market participant, we are not represented on the panel at all,’ Mohanty said, adding that he is optimistic that the central bank will grant the much-needed access to this database because discussions with the regulator have been smooth and positive thus far.

LIC is the country’s largest financial body, with approximately Rs 45 lakh crore in market exposure and numerous market instruments.

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