The conditions include that the banks' net worth should not be less than Rs 5 billion
Reserve Bank of India
Mumbai: The Reserve Bank of India (RBI) on Thursday said banks would be allowed to offer insurance broking services by setting up a subsidiary or through a joint venture if they meet certain conditions, in a move to increase insurance penetration in the country.
The conditions include the banks' net worth should not be less than 5 billion rupees ($80.57 million) and its net non-performing loans should not be more than 3 per cent, the central bank said in a statement.
The banks would also be allowed to get into insurance brokerage business on their own, the statement said.
( Source : reuters )
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