scorecardresearch
Follow Us:
Friday, January 28, 2022

Current a/c criteria eased for insurance intermediaries: Irdai

In August last year, the Reserve Bank of India (RBI) had instructed banks not to open current accounts for customers who have availed credit facilities in the form of cash credit or overdraft from the banking system.

By: ENS Economic Bureau | New Delhi |
December 30, 2021 4:07:20 am
An Insurance Regulatory and Development Authority of India (Irdai) circular said it has been observed that insurance intermediaries maintain multiple current accounts with banks at different operational levels (branch offices, corporate offices, etc), for regulatory and other purposes.

Irdai on Wednesday said that insurance intermediaries, including entities sponsored by them, can maintain current accounts in appropriate number of banks so as to meet regulatory requirements and reinsurance business.

In August last year, the Reserve Bank of India (RBI) had instructed banks not to open current accounts for customers who have availed credit facilities in the form of cash credit or overdraft from the banking system. Later, on a review, the central bank permitted banks to open specific accounts that are stipulated under various statutes and instructions of other regulators/ regulatory departments, without any restrictions placed in terms of its August 2020 circular.

An Insurance Regulatory and Development Authority of India (Irdai) circular said it has been observed that insurance intermediaries maintain multiple current accounts with banks at different operational levels (branch offices, corporate offices, etc), for regulatory and other purposes.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement