IRDAI in conditional agreement on fixing a cap on banks' stake in insurance companies

The Reserve Bank of India (RBI) along with the insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) are in discussion on the issue of capping banks’ stake in insurance companies.

The IRDAI is in favour of allowing banks to hold up to 30 percent stake in insurance companies, according to sources. It also suggested that banks with over 30 percent stake be given at least 2 years to pare down their stake to 30 percent.

No final call has been taken so far, but there will be more meetings between IRDAI and RBI on this proposal.