The Reserve Bank of India has released on its website, ‘Draft Guidelines on Entry of Banks into Insurance Business -Insurance Broking Business' for comments and feedback.
It has been decided to permit banks to undertake insurance broking business departmentally. Since Insurance Broking is a knowledge intensive activity which requires professional expertise, this will be permitted subject to the certain conditions.
"Banks desirous of offering insurance broking services should seek specific prior approval of Reserve Bank of India. Validity period for the approval granted for insurance broking will be three years subject to review thereafter," the RBI has said in a release.