Insurance CA

January to November.

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 SBM Bank (India) has raised Rs 99 crore through the issuance of the second tranche of Basel-III
compliant tier II bonds in January 2023. The bank has raised the entire corpus from Life Insurance
Corporation (LIC).
 With this fresh round of capital raising from multiple investors, SBM Bank India now has raised a total of
Rs 224 crore to date through Basel III compliant tier II bonds.
Learn Along:
LIC Headquarters: Mumbai Chairperson: MR Kumar
(BP JAN 2023 PG 7 )

EPFO has started online facility for pensioners

 The Employees’ Provident Fund Organisation (EPFO) has now provided an online facility on the
member portal to enable applications for higher pension under the joint option. Employees who retired
before September 1, 2014 and had exercised the joint option for higher pension under the scheme
can now log onto the Universal Account Number (UAN) portal of the EPFO and submit their
applications.
 The pensioners who, as employees, had contributed to the pension scheme on salaries exceeding the
then prevalent wage cap of Rs 5,000 and Rs 6,000, and had jointly applied with their employer for such
a contribution, but whose request was declined by the PF authorities, would be able to apply digitally
or online on the EPFO website.
Learn Along:
EPFO is a statutory body established by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and
is under the administrative control of the Ministry of Labour and Employment
EPFO Headquarters: New Delhi Central PF Commissioner: Neelam Rao

UAN stands for Universal Account Number to be allotted by EPFO. The UAN will act as an umbrella for the multiple
Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification
Numbers (Member Id) allotted to a single member under single Universal Account Number.

( JAN BP PG 27)

EPFO to launch district outreach programme in January 2023

 The Employees’ Provident Fund Organisation will launch a district outreach programme on January
27 as a means to create awareness and reach out to stakeholders.
 Nidhi Aapke Nikat 2.0 which is to be launched , will be a platform for grievance redressal as well as for
information exchange between employers and employees and with district level authorities of
various State and Central Government departments.
 The programme will be conducted on 27th of every month starting from January 2023.
(JAN BP PG 28)

PFRDA introduces new bank account verification and name/PAN matching process

 The Pension Fund Regulatory and Development Authority (PFRDA) has introduced an advanced
mode of bank account verification of subscribers through PAN-PRAN-VPA (UPI).

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 This advanced mode of Bank Acct Verification of the Subscribers (PAN-PRAN- VPA(UPI)) with elegant
features where the joint holder details, PAN and UPI Ids are verified through NPCI and matched with
Permanent Retirement Acct Number (PRAN)
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Supratim Bandyopadhyay

(JAN BP PG 52)
More than 50 million citizens subscribe to Atal Pension Yojana: PFRDA

 According to the data provided by the Pension Fund Regulatory & Development Authority (PFRDA)
,more than 5 crore people have enrolled under Atal Pension Yojana (APY).
 The scheme has enrolled more than 1.25 crore new subscribers in 2022 in comparison to 92 lakh new
subscribers enrolment in the calendar year 2021.
 In the public sector bank category, Bank of India, State Bank of India and Indian Bank have achieved
the allocated targets, while in the Regional Rural Bank (RRB) category, 21 banks have achieved the
allocated targets, with the highest achievement by Jharkhand Rajya Gramin Bank, Vidharbha Konkan
Gramin Bank and Baroda UP Bank.
 Currently enrolments of females in the scheme has grown to 45 per cent of total enrolments. Similarly,
subscribers between age 18 and 25 years have grown to 45 per cent of total enrolments, in comparison
to 32 per cent recorded in 2017. As on date, total assets under management (AUM) in APY is also
more than Rs 25,000 crore.
(JAN BP PG 52)

IRDAI makes KYC details mandatory while purchasing insurance from Jan 1,2023

 The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all
policyholders must provide their Know Your Customer (KYC) details when purchasing any type of
insurance policy from January 1, 2023.
 This requirement applies to all individuals and entities purchasing insurance in India and is intended
to ensure that insurance companies have accurate and up-to-date information about their
policyholders.
 Currently, KYC documents are only required when making a claim worth over Rs 1 lakh. Under the new
insurance rule, KYC documents will be required even while purchasing a new policy.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

KYC means to ‘know your customer’ which is an effective way for an institution to confirm and thereby verify the
authenticity of a customer. For this, the customer is required to submit all KYC documentation before investing in various
instruments. All financial institutions are mandated by the RBI to do the KYC process for all customers before giving them
the right to carry out any financial transactions. Whether the customer uses KYC online verification or opts for offline
KYC, this is a simple one-time process.
(JAN BP PG 53)

IRDAI to allow insurers to auto-renew FRN of cross-border reinsurers

 The Insurance Regulatory and Development Authority of India (IRDAI) has decided to consider
allowing domestic insurance firm to auto- renew the file reference number (FRN) of cross-border
reinsurers (CBRs), provided that the CBRs meet the criteria laid down by IRDAI for obtaining such a
renewal. Currently, FRNs are allotted by the insurance regulator on an annual basis.

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 The CBRs play a significant role in the insurance ecosystem by providing reinsurance support/capacity to
insurers. An insurer has to ensure that the CBR meets the rating requirements under IRDAI
(Reinsurance) Regulations, 2018, and acquires the FRN, before placing any business with it.

 This is in line with the vision to provide ease of doing business to insurers and reinsurers so as to
facilitate the development of the insurance industry in the country.The facility for auto-renewal would
be available for FY24 and beyond.
Learn Along:
The reference number is the term used to define a Unique identification number that is applied to different types of
financial transactions. All kinds of transactions have a reference number – be it the credit/Debit Card payments or net
banking. Each transaction has a unique reference number. This identifier is specially assigned to the debit and credit card
transactions, giving the recipients and senders an opportunity to identify the monetary transaction in their records.
 (JAN BP PG 53)

Insurers can classify green bond purchases as infra investments: IRDAI

 The Insurance Regulatory and Development Authority of India has allowed insurers to classify their
sovereign green bond purchases as infrastructure investments.
 The move was made with the objective of de-concentration and diversification of insurers' infrastructure
portfolios as well as from the perspective of participation in environmental, social and governance
(ESG) initiatives.
Learn along:
Environmental, social and governance (ESG) is a term used to represent an organization's corporate financial interests
that focus mainly on sustainable and ethical impacts. Capital markets use ESG to evaluate organizations and determine
future financial performance. While ethical, sustainable and corporate governance are considered non-financial
performance indicators, their role is to ensure accountability and systems to manage a corporation's impact, such as its
carbon footprint.

 (JAN BP PG 53)

PFRDA mandates uploading of certain documents with effect from April 1,2023

● The Pension Fund Regulatory and Development Authority (PFRDA) has said that uploading certain
documents will be mandatory from 1st April 2023 for NPS subscribers who want to exit and get timely
annuity payments.
● As per the circular, the subscribers and the associated nodal officers/POPs/ Corporate will have to
ensure that the following four documents are uploaded on the respective CRA user interface.The
documents required to be uploaded are-
o NPS Exit/ Withdrawal Form
o Proof of Identity and Address as specified in the Withdrawal form
o Bank account Proof
o Copy of PRAN card
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Supratim Bandyopadhyay
 (FEB BP PG 46)

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LIC sells 2 pc stake in NMDC between December and March, garners over Rs 700 crore

 Life Insurance Corporation (LIC) has sold 2 per cent of its equity stake in state-owned NMDC, taking
its total shareholding in the public sector unit to 11.69 per cent as of March,2023.
 LIC notified that its holding in NMDC has decreased from 13.69 per cent to 11.69 per cent during the
period between December, 2022 and March,2023.
 The sale of 2 per cent stake in open market has fetched over Rs 700 crore to LIC.
Learn Along:
LIC Headquarters: Mumbai Chairperson: Siddhartha Mohanty

NMDC Limited Headquarters: Hyderabad CMD: Sumit Deb

IDFC Mutual Fund rebrands itself as Bandhan MF

 IDFC Mutual Fund has rebranded itself as Bandhan Mutual Fund. The fund house has also unveiled a
new logo.
Learn Along:
IDFC Mutual Fund Headquarters: Mumbai CEO: Vishal Kapoor
 (march BP PG 30)

Bandhan MF Renames US Debt ETF Fund As US Treasury Bond 0-1 Year Fund Of Fund

 Bandhan Mutual Fund in March , 2023 confirmed that the recently-launched US Debt (ETF) Fund has
been renamed as the Bandhan US Treasury Bond 0-1 Year Fund of Fund.
 Bandhan Mutual Fund notified that the open-ended fund of fund (FoF) will invest in units and/or shares
of overseas index funds and/or exchange-traded funds (ETFs), and track an index with the US treasury
securities in the 0-1 year maturity range as its constituents.
Learn Along:
Bandhan Mutual Fund Headquarters: Mumbai CEO: Vishal Kapoor

Treasury bonds (T-bonds) are debt obligations issued and backed by the full faith and credit of the U.S. government.
They are essentially loans from citizens to the government upon which interest is paid at regular intervals before the
principal is eventually returned to the citizen upon the bond’s maturity.
 (march BP PG 30)

PFRDA increases Ombudsman's upper age limit to 70 years from 65 years

 Pension Fund Regulatory and Development Authority (PFRDA) has increased the upper age limit by
5 years for Ombudsman to 70 years.As per the Pension Fund Regulatory and Development Authority
(Redressal of Subscriber Grievance) Regulations 2015, the upper age limit was 65 years.
 Ombudsman appointed by PFRDA receives, considers and facilitates resolution of complaints or
grievances, which fall within the ambit of the regulations.
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Deepak Mohanty

 (march BP PG 61)

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IRDAI names LIC, GIC as 'domestic systemically important' insurers

 Insurance Regulatory and Development Authority of India has identified Life Insurance Corporation
(LIC), New India Assurance, and General Insurance Corporation (GIC Re) as domestic systemically
important insurers (D-SIIs) for 2022-23.
 D-SIIs refer to insurers of such size, market importance, and domestic and global
interconnectedness, whose distress or failure would cause a significant dislocation in the domestic
financial system.
 Therefore, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance
services to the national economy.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

LIC Headquarters: Mumbai Chairperson: MR Kumar

New India Assurance Headquarters: Mumbai CEO: Atul Sahai

General Insurance Corporation of India Headquarters: Mumbai CMD: Devesh Srivastava

IRDAI grants life insurance registration to Acko & Credit Access Grameen

 The Insurance Regulatory and Development Authority of India (IRDAI) has granted certificates of
registration to Acko Life Insurance and Credit Access Life Insurance.
 With the entry of these two firms into the space, the number of life insurance companies in the sector
goes up to 25, after remaining stagnant since 2011.
 CreditAccess Grameen Limited is the largest microfinance institution of India, which has the largest
microfinance market share in the world.
Learn Along:
Acko Life Insurance Headquarters: Mumbai MD & CEO: Sanjeev Srinivasan

Credit Access Life Insurance Headquarters: Bengaluru CEO: Udaya Kumar Hebbar
 (April BP PG 16)

IRDAI's new rules for commission payouts may lead to better pricing

 The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new
regulations on commission payments to intermediaries and expenses of management for general and
health insurance companies.
 While the Payment of Commission Regulations, 2023, removes previous caps on payments, the
Expenses of Management (EOM) Regulations, 2023, allows for additional expenses related to foreign
and IFSC branches, Insurtech, and insurance awareness.
 The new regulations issued by the Insurance Regulatory and Development Authority of India (IRDAI) will
be effective from April 1.
 Under the EOM Regulations, 2023, general insurance companies can work with EOM up to 30% of
gross premium written, while insurers carrying on standalone health insurance business are allowed to go
up to 35% of gross premium written.
 The objective of these regulations is to provide the insurers the flexibility to manage their expenses
based on their growth aspirations and the ever-changing insurance needs with an objective to
improve insurance penetration.
April BP PG 17)

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Market share of PSU general insurers shrinks 800 bps in 5 years: IRDAI

 According to the data from the Insurance Regulatory and Development Authority (IRDAI), the four
public sector general insurance companies -New India Assurance, United India Insurance, Oriental
Insurance, and National Insurance Company -have lost 800 basis points (bps) in market share in last
five years to their private counterparts.
 The latest data shows that at the end of FY23, the market share of these firms cumulatively declined to
32.37 percent -- a drop of 803 bps.
 Among the four insurers, New India Assurance witnessed a marginal fall in its market share, of just 64
bps, and maintained its position as the country‘s leading general insurer.
 The other three, however, witnessed a noticeable downfall in their market standing. Kolkata-based
National Insurance Company saw the most downfall in market share of over 300 bps, followed by
United India Insurance (276 bps), and Oriental Insurance (171 bps).
Learn Along:
New India Assurance Headquarters: Mumbai CMD: Neerja Kapur

United India Insurance Headquarters:Chennai CMD: Satyajit Tripathy

Oriental Insurance Headquarters:New Delhi CMD: R. R. Singh

National Insurance Company Headquarters: Kolkata CMD: Suchitha Gupta

Enrolments under Atal Pension Yojana (APY) cross 5. 20 crore mark

 Total enrolment under Atal Pension Yojana crossed 5.20 crore mark as on 31 March 2023. The
scheme enrolled more than 1.19 crore new subscribers in FY 2022-23 as compared to 99 lakh in the
last financial year, depicting a growth of more than 20%.
 As on date, the total assets under management (AUM) in APY is more than Rs. 27,200 crore and the
scheme has generated investment return of 8.69% since inception of the scheme.
 Furthermore,12 states like Bihar, Jharkhand, Assam, Uttar Pradesh, West Bengal, Madhya Pradesh,
Tripura, Rajasthan, Andhra Pradesh, Chhattisgarh, Odisha and Uttarakhand also achieved their annual
targets with the help and support of their respective State Level Banker‘s Committee (SLBCs).
Learn Along:
Atal Pension Yojana-The government has launched Atal Pension Yojana (APY), a pension scheme mainly aimed to
create social security for all Indians. It is especially for the poor, the underprivileged, and the unorganised sector, such as
maids, delivery boys, gardeners, etc. The APY scheme replaced the previous Swavalamban Yojana, which was not
much accepted.The goal of the scheme is to ensure that no Indian citizen has to worry about any illness, accidents or
diseases in old age, giving a sense of security. There is an option of getting a fixed pension of Rs 1000, Rs 2000, Rs
3000, Rs 4000, or Rs 5000 on attaining an age of 60. The pension will be determined based on the individual’s age and
the contribution amount.

Assets under management (AUM), also called funds under management, is the total market value of the securities a
financial institution (such as a bank, mutual fund, or hedge fund) owns or manages on behalf of its clients.

(April BP PG 39)

LIC increases its shareholding in Hindustan Petroleum by over 5%

 Life Insurance Corporation of India (LIC), announced that its shareholding in Hindustan Petroleum
Corporation (HPCL) has increased to 5.013% per cent from 4.901 per cent.

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Learn Along:
LIC Headquarters: Mumbai Interim Chairman: Siddhartha Mohanty

HPCL Headquarters: Mumbai Chairman & MD: Pushp Kumar Joshi

IRDAI Asks Insurers to lay Down Social Media Norms for Employees

 The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurance
companies to lay down social media guidelines for their employees to ensure that no unverified or
confidential information relating to the organization is disseminated to the public through these platforms.
 The Information and Cyber Security Guidelines, which were issued by IRDAI to all insurers, have a
specific section on 'Acceptable usage of social media' -- which states that the employees should be
refrained from disseminating any unverified and confidential information on "any Blogs/Chat
forums/Discussion forums/Messenger sites/Social networking sites".
 Any information received, accessed or obtained by an employee, either in his/her official mail/personal
mail/Media Forums or in any other manner, if proposed to be disseminated or shared in any Media Forum,
should be forwarded to the Organisation's Compliance team and corporate communication team for
prior approval.
 It further said that any personal internet posting or communication which implies that you work for an
organisation must include a simple and visible disclaimer like 'the postings on this service are my own
personal views and not those of organisation and are not intended to be interpreted as such.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

IRDAI relaxes norms for surety bonds to expand the market for such products

 Insurance Regulatory and Development Authority of India (IRDAI) has relaxed norms for surety
bonds, a type of insurance policy protecting parties involved in a transaction or contract from potential
financial losses due to a breach of contract or other types of non-performance.
 The changes are aimed at expanding the surety insurance market by increasing the availability of such
products.
 The solvency requirement is applicable for such products has now been reduced to control the level of
1.5 times from 1.875 times previously prescribed.
 Further, the prevailing 30 percent exposure limit applicable on each contract underwritten by an
insurer, has also been removed.
Learn Along:
A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an
obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in
accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or
losses.

IRDAI directs insurers to cover surrogacy expenses under health insurance policy

 A health insurance policy will now cover surrogacy expenses for families who due to medical
conditions are unable to start a family. This is because the Insurance Regulatory and Development
Authority of India (IRDAI) has directed all insurers to comply with the Surrogacy Act, 2012 and ART
(Assisted Reproductive Technology) Act, 2021.
o Section 4 (iii)(a)(III) of Surrogacy (Regulation) Act, 2021 states an insurance coverage of such
amount and in such manner as may be prescribed in favour of the surrogate mother for a period of

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thirty-six months covering postpartum delivery complications from an insurance company or an
agent recognised by the IRDAI; (b) the surrogate mother is in possession.
o Rule 5 of Surrogacy (Regulation) Rules, 2022 states (1) The intending woman or couple shall
purchase a general health insurance coverage in favour of surrogate mother for a period of thirty
six months from an insurance company or an agent recognized by the IRDAI for an amount which is
sufficient enough to cover all expenses for all complications arising out of pregnancy and also
covering post- partum delivery complications.
o Section 22(1)(b) of ART Act, 2021 states as under: An insurance coverage of such amount as may be
prescribed for a period of twelve months in favour of the oocyte donor by the commissioning
couple or woman from an insurance company or an agent recognized by the IRDAI.

IRDAI forms an expert panel for advice on mental health cover

 Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) has constituted
a five-member expert committee comprising medical experts and insurers for advice on matters related
to mental health and insurance.
 With the National Institute of Mental Health and Neurosciences (NIMHANS) Director Pratima Murthy
as chairperson, the committee will be providing advice and inputs on existing coverage and those to be
offered for mental illnesses. It will also guide on the terminology and concept from a medical domain
perspective, and aspects pertaining to mental illnesses from an insurance perspective.

IRDAI to hold open house for insurtech, fintech on 15th of every month

 Insurance Regulatory and Development Authority of India (IRDAI) will hold an open house for the
insurtech and fintech companies on 15th of every month to look at bringing in more innovation ideas
for the insurance sector.
 The open house is intended to invite suggestions from them to provide effective and seamless
solutions and ideas to various insurance-related activities, which would help insurance companies to
provide better services to policyholders.

NPS rule change: PFRDA allows these investors to buy multiple annuities from the same life insurance
company

 With an aim to provide subscribers with a wider range of annuity options, the Pension Fund
Regulatory Development Authority (PFRDA) will now allow multiple Annuities for those NPS
Subscribers who earmark the annuity corpus more than Rs 10 lakh wherein Rs 5 lakh utilised to buy
each annuity scheme.
 PFRDA also notified that NPS subscribers will get the choice of multiple annuities from the same ASP will
be made available. Under NPS, the immediate annuities are made available to the subscribers by
Annuity Service Providers (ASPs) under the enabling provisions of Exit Regulations of PFRDA. As of
now, the subscribers are allowed to buy one annuity scheme from the ASP at the time of exit.
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Deepak Mohanty

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the
subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS
seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable
solution to the problem of providing adequate retirement income to every citizen of India

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SBI Life to take over 200,000 policies of Sahara India Life Insurance

 The Insurance Regulatory & Development Authority of India (IRDAI) has identified SBI Life
Insurance to take over the liabilities of about 200,000 policies of Sahara India Life Insurance (SILIC)
as the latter failed to comply with regulatory directions, amid deteriorating financial health after being
put under restrictions in 2017.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

SBI Life Insurance Headquarters: Mumbai MD & CEO: Mahesh Kumar Sharma

Tax hike on international transactions to come into effect from October 1,2023

 The Ministry of Finance has extended the deadline to apply the proposed changes in Tax Collection
at Source (TCS) rates from October 1, 2023.
 There is no change in rate of TCS for all purposes under Liberalised Remittance Scheme (LRS) and for
overseas travel tour packages, regardless of mode of payment, for amounts up to Rs 7 lakh per
individual per annum.
Learn Along:
Ministry of Finance Union Minister: Nirmala Sitharaman

Tax collection at source (TCS) is an extra amount collected as tax by a seller of specified goods from the buyer at the
time of sale over and above the sale amount and is remitted to the government account.

SBI Mutual Fund gets IRDAI nod to acquire up to 10% stake in ICICI Lombard

 IRDAI has given its approval to SBI Mutual Fund for acquiring up to 10% of the total paid-up equity
share capital of ICICI Lombard General Insurance through market purchase.
 For the quarter ended March 2023, promoter ICICI Bank‘s shareholding in the general insurance company
stood at 48.02%. SBI Mutual Fund through various schemes held 4.62% in the insurance company.
Learn Along:
SBI Mutual Fund Headquarters: Mumbai MD & CEO: Shamsher Singh

ICICI Lombard Headquarters: Mumbai CEO: Bhargav Dasgupta

Life Insurance Corporation increases stake in SAIL by 2.001% to 8.687%

 Life Insurance Corporation (LIC) of India has increased its stake in the Steel Authority of India
(SAIL) by 2.001 per cent to 8.687 per cent from 6.686 per cent earlier and now owns 358.8 million
shares of the steel major.
Learn Along:
LIC Headquarters: Mumbai Chairperson: Siddhartha Mohanty

Steel Authority of India Headquarters: New Delhi Chairman: Amarendu Prakash

LIC buys additional Tech Mahindra shares, raises stake to 8.88% in IT major

 Life Insurance Corporation of India (LIC) has increased its stake in Tech Mahindra to 8.88 per cent.
This is 81 basis points higher than 8.07 per cent stake that it held in the IT major as on March 31,2023.

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Learn Along:
Tech Mahindra Headquarters: Pune MD & CEO: Mohit Joshi

LIC pares 2% stake in NMDC for Rs 649 cr; brings down holding to 9.62%

 Life Insurance Corporation (LIC) has reduced its stake in iron ore producer NMDC to 9.62 per cent by
selling a little over 2 per cent stake for about Rs 649 crore.
 LIC‘s shareholding in NMDC has decreased from 11.69 per cent to 9.62 per cent.
Learn Along:
LIC Headquarters: Mumbai Chairperson: Siddhartha Mohanty

National Mineral Development Corporation Headquarters: Hyderabad CMD: Amitava Mukherjee

Union Bank Of India Introduces New Saving & Current Account Schemes

 With an aim to enhance inclusivity and diversity, Union Bank Of India introduced below mentioned
four new CASA schemes:

o UNION UNNATI:
o The Current Account for women is introduced Recognizing the growing number of women
entrepreneurs and professionals.

o UNION SAMRIDDHI:
o This account scheme is specifically tailored to empower women by providing them with a safe
and convenient avenue to save and manage their finances.

o UNION SAMMAN:
o Saving Account for Pensioners.

o UNION SBCHS:
o Union Bank of India understands the importance of cooperative housing societies in fostering a
sense of community and affordable housing solutions.
Learn Along:
Union Bank of India Headquarters: Mumbai MD & CEO: A. Manimekhalai

IRDAI Broadens Scope Of 'Use And File' For Life Insurance Products

 The Insurance Regulatory and Development Authority of India (IRDAI) has expanded the scope of the
existing 'use and file' procedure, allowing insurance companies to introduce Unit Linked Insurance Plans
(ULIPs) and combi plans (combination of life and health insurance plans) without the need for prior
approval from the regulator.
 Under the revised guidelines, insurers can launch products first and then fill the details with the regulator
using the 'use and file' procedure. This procedure applies to health insurance products, life insurance
products, and most general insurance products.
 The recent modifications include the inclusion of individual and group unit-linked life and health insurance
products under para No.10.4 of Section B of Chapter I. Life insurers can now utilize and file these
products under the revised procedure.
 Additionally, a new para 10.10 has been introduced, allowing the introduction of "combi products"
where a life insurer acts as the lead insurer. Compliance with the norms set by IRDAI is mandatory for
life insurers offering combi products.

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 In an effort to streamline the product launch process, the regulator has eliminated the segregated fund
identification number (SFIN) clearance process. This change reduces administrative obstacles for
insurers, enabling smoother and faster product launches.
 However, life insurance companies must still adhere to other prudential and exposure norms outlined in the
IRDAI (Investment) Regulations, 2016 for each ULIP segregated fund and overall assets under
management (AUM) of ULIPs.
 Furthermore, IRDAI has allowed the addition of new unit-linked funds to existing products, expanding
investment choices for customers and promoting incremental innovation in the industry.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

Assets under management (AUM), also called funds under management, is the total market value of the securities a
financial institution (such as a bank, mutual fund, or hedge fund) owns or manages on behalf of its clients.

ECGC Ups Cover to 90% for Exporters with Up to ₹50-cr Credit Limit

 The Export Credit Guarantee Corporation (ECGC) plans to support exports worth ₹10 lakh crore in
FY24 from around ₹6.7 lakh crore at present. It has also increased the insurance cover for exporters with
a credit limit of up to ₹50 crore to 90% and extended its cover to nine more banks. The change comes
into effect on July 1, 2023.
 The benefit of the enhanced cover will be extended to the accounts with limits up to ₹50 crore for these
four banks without extra cost.
 For nine banks where six-year claim to premium ratio is less than 70%, cover for accounts with export
credit working capital limits up to Rs 20 crore, will be offered enhanced cover of 90% without any
additional cost provided the banks are extending the export credit at an interest rate corresponding to
the accounts rated ‗AA‘ (or with equivalent rating).
Learn Along:
Export Credit Guarantee Corporation Headquarters: Mumbai CMD: M. Senthilnathan

NPS Systematic Lump Sum Withdrawal (SLW) Plan: National Pension System (NPS) subscribers will
be able to withdraw through SLW process

 In accordance with Regulations 3 (a) (ii) and 4 of PFRDA (Exits and Withdrawals under the NPS)
Regulations, 2015 and amendments therein and to ease the process of lump sum withdrawal, now the
subscribers are allowed to withdraw through a ‘Systematic Lump sum Withdrawal (SLW)‘ process on a
periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75 years as per the
choice of the Subscriber at the time of their exit postretirement/ superannuation or upon reaching 60
years as the case may be.
 As per the circular, the SLW facility will be available for both Tier-I and Tier-II NPS accounts. Further, this
SLW will be allowed only in case of normal exit and not in case of premature exit. Exit due to the death
of an NPS subscriber will also not have the SLW option.
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Deepak Mohanty

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the
subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS
seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable
solution to the problem of providing adequate retirement income to every citizen of India

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 Insurance Related CA

DCB Bank gets RBI's approval to sell 7.5% stake to Tata Mutual Fund

 Private sector DCB Bank has received RBI approval to sell up to 7.5 per cent stake in the bank to Tata
Asset Management Private Limited (TAMPL).
 The acquisition of stake up to 7.5 per cent of the paid-up equity capital of the bank would be through the
schemes of Tata Mutual Fund.
Learn Along:
DCB Bank Headquarters: Mumbai MD & CEO: Murali M. Natrajan

Tata Mutual Fund Headquarters: Mumbai Chairman: Rajiv Sabharwal

MoU signed between Ministry of Culture and Canara Bank to facilitate provision of financial
assistance to Veteran Artists

 An MoU has been signed between the Ministry of Culture and Canara Bank for disbursal of financial
assistance to the selected beneficiaries under the ―Scheme for Financial Assistance for Veteran
Artists‖ earlier known as ―Scheme for Pension and Medical Aid to Artists‖.
 As per the MoU, master data of selected beneficiaries both for fresh as well as legacy data is to be
uploaded by the Ministry in the online portal to be developed by the Canara Bank for this purpose.
Based on the scheme guidelines Canara Bank is required to work out the quarterly requirement of
funds and raise the demand for the same to the Ministry.
 An artist aged 60 years and above who has contributed in the field of art and culture in their active age
and whose annual income is not more than Rs. 48,000/- can apply under the scheme either through Art
& Culture Department of the concerned State Government/UT or Zonal Cultural Center.
 Release of financial assistance on monthly basis to the eligible beneficiaries is one of the main
objectives of the MoU entered with Canara Bank. Under this scheme an amount of Rs. 26.00 crore has
been allocated in B.E. for the year 2023-24.
Learn Along:
Ministry of Culture Union Minister: G.Kishan Reddy

Canara Bank Headquarters: Bengaluru Executive Director: K Satyanarayana Raju

HDFC buys an additional stake in insurance firm HDFC ERGO to make it an arm

 HDFC Ltd has increased its stake in the HDFC Ergo – the general insurance venture of the home
financier – above 50 percent, ahead of the merger with HDFC Bank.
 Post the stake increase, HDFC will hold 50.5 per cent stake in the general insurance company, which
will become a subsidiary of HDFC. After the HDFC Bank merger, HDFC‘s stake in Ergo will be
transferred to the bank.
 According to Reserve Bank of India (RBI) rules, a bank can hold either below 30 per cent or above 50
percent stake in insurance ventures.
Learn Along:
Housing Development Finance Corporation Headquarters: Mumbai CEO: Keki M. Mistry

HDFC ERGO General Insurance Company Headquarters: Mumbai CEO: Ritesh Kumar

LIC unloads over 2% shares in Bajaj Auto via open market transactions

 Life Insurance Corporation of India (LIC) has offloaded a little over two per cent in Bajaj Auto Ltd
through an open market sale.

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 Insurance Related CA
 LIC decreased its shareholding from 5.2 per cent to 3.17 per cent in Bajaj Auto Ltd, a decline of 2.07
percentage points.
Learn Along:
LIC Headquarters: Mumbai Chairperson: Siddhartha Mohanty

Bajaj Auto Headquarters: Pune CEO: Rajiv Bajaj

The Goa government has signed three MoUs to strengthen MSMEs in the state and enable digital payments in
government departments. One of the MoUs signed was with the Credit Guarantee Fund Trust for Micro and Small
Enterprises for administering the Goa Credit Guarantee Scheme or Mukhyamantri Saral Udyog Sahayya Yojana in
the state.

IRDAI asks private insurers to frame pay norms for top brass within 3 months

 Issuing revised guidelines applicable for remuneration payable to key managerial persons (KMPs) of
private sector insurance companies from the current financial year, IRDAI has directed the insurers to
complete the framing and reviewing of their remuneration policies based on these guidelines within
three months.
 According to the revised guidelines, the minimum parameters which an insurance company should take
into account for the determination of performance assessment of all KMPs for payment of variable pay
or incentives are overall financial soundness such as net-worth position, solvency, growth in AUM and
net profit, compliance with expenses of management (EoM) regulations, claim efficiency in terms of
settlement and outstanding, among others.
 These parameters should constitute at least 60% of the total weightage in the performance assessment
matrix of MD/CEO/WTDs (whole-time director), and at least 30% of the total weightage in the
performance assessment matrix of other KMPs individually.
 Variable pay shall be at least 50% of the fixed pay for the corresponding period and shall not exceed
300% of the fixed pay. Where variable pay is up to 200% of the fixed pay, a minimum of 50% of the
variable pay shall be via a non-cash instrument.
 The same limit would be 70%, in case the variable is above 200% of the fixed pay, adding a minimum
of 50% of the total variable pay must invariably be under deferral arrangements and the deferral period
should be a minimum of three years.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

Centre launches Technological Advancements in Crop Insurance to Empowering Farmers and

 The Ministry of Agriculture and Farmers Welfare launched several new technological initiatives
under the Pradhan Mantri Fasal Bima Yojana to empower farmers and streamlining the operations.
 The initiatives include YES-Tech Manual, WINDS portal and door-to-door enrollment app
AIDE/Sahayak
 YES-TECH Manual is a comprehensive guide developed after extensive testing and piloting in 100
districts of India. It facilitates the implementation of YES-TECH, a technology-driven yield estimation
system, offering methodologies, best practices, and integration insights for accurate yield
assessments at the Gram Panchayat level.
 On the other hand, the WINDS Portal is a centralized platform that hosts, manages, and processes
hyper-local weather data collected by Automatic Weather Stations and Rain Gauges at Taluk/Block

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 Insurance Related CA
and Gram Panchayat levels. The portal enhances risk assessment and decision-making in crop
insurance, agriculture advisories, and disaster mitigation, supporting the agricultural sector and rural
economy.
 The AIDE app's introduction on Android platform aims to revolutionize the enrolment process,
bringing it directly to the doorstep of farmers. This door-to-door enrolment ensures a seamless and
transparent process, making crop insurance more accessible and convenient for farmers.
Learn Along:
The Pradhan Mantri Fasal Bima Yojana was launched on 18th February 2016 by Prime Minister Shri Narendra Modi.
PMFBY provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the
farmers. The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield
data is available and for which requisite number of Crop Cutting Experiments (CCEs) are conducted being under General
Crop Estimation Survey (GCES). The scheme is implemented by empanelled general insurance companies.

PFRDA to allow pension funds for investments in sovereign green bonds

 Pension Fund Regulatory & Development Authority (PFRDA) will allow pension funds to invest in
sovereign green bonds when issued.
 Currently, the PFRDA's assets under management (AUM) is at Rs. 9.8 trillion and will certainly be more
than Rs. 11 trillion by FY24-end.
Learn Along:
Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Deepak Mohanty

Max Life appointed as Lead Insurer for Uttar Pradesh under IRDAI’s State Insurance Plan

 Max Life Insurance Company Ltd. has been appointed as the “Lead Insurer‖ for the State of Uttar
Pradesh by the Insurance Regulatory and Development Authority of India (IRDAI).
 Under the State Insurance Plan, IRDAI has initiated a collaborative platform with insurers by assigning
two states to each insurer to enhance financial awareness and drive insurance inclusion.
 Supporting this vision, Max Life aims to create awareness, enhance accessibility and drive affordable
insurance coverage across Uttar Pradesh in a phased manner.
Learn Along:
Max Life Insurance Headquarters: New Delhi CEO: Prashant Tripathy

IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

SBI receives approval to set up SBI Funds Management subsidiary in IFSC Gift City

 The State Bank of India has got in-principle approval to set up a wholly owned subsidiary by SBI
Funds Management Ltd at IFSC Gift City Gandhinagar.
Learn Along:
SBI Mutual Fund Headquarters: Mumbai MD & CEO: Shamsher Singh

LIC Mutual Fund completes the takeover of IDBI Mutual Fund schemes

 LIC Mutual Fund (MF) has completed the takeover of schemes of IDBI MF. Out of 20 schemes of IDBI
MF, 10 have been merged with similar schemes of LIC MF and the remaining 10 have been taken over
by LIC MF.
 At the end of June, the AUM of LIC MF and IDBI MF stood at Rs. 18,400 crore and Rs. 3,650 crore.

15
 Insurance Related CA
Learn Along:
LIC Mutual Fund Headquarters: Mumbai MD & CEO: T. S. Ramakrishnan

IDBI MF Headquarters: Mumbai Chairman: Rakesh Sharma

 Axis Asset Management, the mutual fund arm of private sector lender Axis Bank, has launched a private
credit alternative investment fund (AIF) and is aiming to raise as much as Rs 1,250 crore from
investors.
 The private credit fund is part of Axis Mutual Fund‘s alternative assets business, which comprises late-
stage private equity and real estate AIFs on the private markets side, and portfolio management
services and long-only equity AIFs on the public markets side. Axis manages assets worth about `5,000
crore under these asset classes.
Learn Along:
Axis Mutual Fund Headquarters: Mumbai CEO: Chandresh Nigam

Star Health and Allied Insurance will have a strategic alliance with Standard Chartered Bank to offer products
through the lender’s branches in India. The partnership will help expand insurance penetration in India and
contribute to Star Health‘s efforts to make quality health insurance accessible to everyone.

Kotak Mahindra Life Insurance Company Ltd has tied-up with ESAF Small Finance Bank (ESAF Bank). The tie-up
plans to benefit 68 lakh customers of ESAF Bank that will offer a wide range of tailor-made life insurance products
and solutions provided by Kotak Life, including protection, savings, investment and retirement through ESAF Bank‘s 700
banking outlets spread across 21 States and 2 Union Territories.

First Indian private life insurer to launch a 24X7 inbound contact centre-SBI Life Insurance has launched its
dedicated 24X7 inbound contact centre to address before and after purchase queries related to comprehensive
insurance solutions provided by the company. The toll-free number is 18002679090. SBI Life, thus, becomes the first
private life insurance company in the country to have such an extensive customer care support, which aligns with the
company‘s commitment in enriching customer experience and addressing their insurance needs/queries at their
convenience.

IRDAI lowers minimum capital need for foreign reinsurers to Rs 50 crore

 The Insurance Regulatory and Development Authority of India (IRDAI) has chosen to lower the
minimum capital requirement for Foreign Reinsurance Business (FRBs) to Rs 50 crore from Rs 100
crore.
 Alongside lowering the capital requirement, IRDAI has also restructured the order of preference to four
categories from the existing six levels. According to the new system, Category 1 will encompass Indian
Reinsurers, including the sole company GIC Re; Category 2 will comprise International Financial
Services Centre Insurance Offices IIOs (which invest 100 per cent of retained premiums emanating
from insurers in India in the DTA) and FRBs.
 Category 3 will consist of ‘Other IIOs’, and Category 4 will include other Indian Insurers (only in respect
of per-risk facultative placements in the insurance segment for which the Insurer is registered to transact
business) and cross-border reinsurers (CBRs)
 The regulatory framework for IIOs is assured to align with International Financial Services Centres
Authority (IFSCA) regulations to eliminate dual compliance.

PFRDA integrates NPS statement with CAS

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 Insurance Related CA
 PFRDA in coordination with SEBI has enabled the NPS subscribers to view their pension fund corpus
along with their demat securities and MF holdings under a single consolidated account statement
(CAS).
 This functionality that will benefit over 1.35 crore NPS subscribers, is expected to provide a simplified
and secured way to stay informed on NPS investments through CAS.
 Currently, CAS, which is provided by National Securities Depository Ltd and Central Depository
Services Ltd, offers a consolidated view of personal investments in the securities market with updated
mark-to-market values.
 The facility to include NPS SoT in CAS will be available to NPS subscribers on a consent basis.
Learn Along:
National Securities Depository Limited Headquarters: Mumbai CEO: Padmaja Chunduru

Central Depository Services Ltd Headquarters: Mumbai Chairperson: Balkrishna V. Chaubal

Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body under the jurisdiction of
Ministry of Finance, Government of India for overall supervision and regulation of pensions in India.
PFRDA Headquarters: New Delhi Chairman: Deepak Mohanty

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the
subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS
seeks to inculcate the habit of saving for retirement amongst the citizens. It is an attempt towards finding a sustainable
solution to the problem of providing adequate retirement income to every citizen of India

RBI decides to withdraw incremental CRR by October 7 in phased manner

 The Reserve Bank of India (RBI) would discontinue the incremental cash reserve ratio (I-CRR)
requirement imposed on banks and return the seized funds in phases.
 Out of the total I-CRR maintained, 25 per cent will be disbursed on September 9, another 25 per cent
on September 23, and the remaining on October 7. It was estimated that around Rs 1 trillion worth of
liquidity was held due to the I- CRR requirement.
 During the August review of the monetary policy, the RBI mandated all scheduled banks to maintain an I-
CRR of 10 percent on the increase in their net demand and time liabilities (NDTL).
Learn Along:
Cash Reserve Ratio is one of the many monetary policy tools that RBI uses to control the money supply in the
economy. RBI is the central bank of our country which manages the money supply to various other commercial
banks, NBFCs and other lenders, which ultimately supply money to the rest of the country. Cash reserve ratio is a
certain percentage of cash that all banks have to keep with the RBI as a deposit. This percentage is fixed by the
RBI and is changed from time to time by the central bank itself.

NDTL refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other
banks. Demand deposits consist of all liabilities, which the bank needs to pay on demand. They include current deposits,
demand drafts, balances in overdue fixed deposits, and demand liabilities portion of savings bank deposits.

Govt considers financial creditor status for insurers issuing surety bond

 To make surety bond business more attractive, the government is going to make relevant changes in
the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of
default of infra projects.

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 Insurance Related CA
 The surety bond issued by a general insurance company is a three-party contract by which one party
(the surety) guarantees the performance or obligations of a second party (the principal) to a third party
(the obligee).
 The surety is a company that provides the financial guarantee to the obligee (usually a government
entity) that the principal (business owner) will fulfil their obligations.
 The Ministry of Corporate Affairs is looking into concerns raised by the insurers that they should have
resort to recovery on par with the banks as forwarded by the Department of Financial Services under
the finance ministry.
 Thus, relevant changes would be made in IBC to provide financial creditor status to the insurer under the
resolution process.
Learn Along:
Ministry of Corporate Affairs Union Minister: Nirmala Sitharaman

Insolvency and Bankruptcy Code 2016 was implemented through an act of Parliament . It got Presidential assent in
May 2016. IBC applies to companies, partnerships and individuals. It provides for a time- -bound process to resolve
insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to
resolve insolvency. Under IBC debtor and creditor both can start 'recovery' proceedings against each other.

Centre introduces 50-year bond to meet life insurance companies' demand

 The central government has introduced a new dated security of 50-year tenor in its borrowing
calendar for the second half of the current financial year - particularly for Life Insurance Corporation of
India.
 The Rs 30,000 crore supply in the 50-year bond will be absorbed by the insurance companies.

Finance ministry raises gratuity limit and insurance cover for LIC agents

 The Finance ministry has approved the enhancement of gratuity limit from Rs 3 lakh to Rs 5 lakh for
Life Insurance Corporation (LIC) agents benefitting more than 1.3 million of them.
 The ministry also increased the term insurance cover for agents from the existing Rs 3,000-10,000 to Rs
25,000-1,50,000.
 The ministry also enabled reappointed agents to be eligible for renewal commissions, thereby providing
them with increased financial stability. Currently, LIC agents are not eligible for renewal commission on
any business completed under the old agency.
 With regard to LIC employees, the ministry has also approved family pension at a uniform rate of 30
per cent for the welfare of families.
Learn Along:
Ministry of Finance Union Minister: Nirmala Sitharaman

LIC Headquarters: Mumbai Chairman: Siddhartha Mohanty

IRDAI approves modification on withdrawn life insurance products

 The Insurance Regulatory and Development Authority of India (IRDAI) approved the reduction of
interest rates for revivals or policy loans, among others. These are applicable to existing policies that
were closed for new business but still exist on insurers' books.
 The alterations are introduced to give additional benefits and flexibility to existing policyholders,
ensuring they are not adversely impacted.
 The insurance regulator has decided to allow the addition of existing riders that are open for sale, the
addition of premium payment modes, the reduction in interest rate for revivals or policy loans, and the
addition of one or more payment frequencies to income benefits payable to policyholders.

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 Insurance Related CA
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

EPFOs gets nod to invest redemptions in ETFs

 EPFO invests in ETFs that mirror the performance of prominent indices like BSE Sensex and Nifty 50.
Additionally, EPFO also invests in ETFs that are created with the specific intention of divesting
government shareholding in India Inc. But now, with an increased focus on equity instruments, EPFO is
looking to target better returns and a larger investible domain for its corpus and subscribers.
 As per government mandate, EPFO is allowed to invest anywhere between 5 to 15% of its corpus in
equity instruments. However, this ceiling has never been utilized by EPFO, with its maximum investment
going just a little over 10%.

SBI Life Insurance, signed a bancassurance pact with the State Bank of Sikkim (SBS). The landmark agreement
highlights SBI Life‘s commitment to make insurance solutions accessible to the residents of Sikkim, through its
trusted bancassurance partner.

IRDAI to deploy Bima Vahak in every Gram Panchayat before end of 2024

 Insurance Regulatory and Development Authority of India (IRDAI) to deploy Bima Vahaks in every
Gram Panchayat before 31 December 2024.
 As per the guidelines, every insurer shall endeavour to engage individual Bima Vahaks and/or corporate
Bima Vahaks with the focus to progressively achieve coverage of every Gram Panchayat. Bima Vahaks
shall be deployed in each Gram Panchayat before 31 December 2024.
 As per the new guidelines, there is no restriction on the number of insurers a Bima Vahak is allowed to
work with. IRDAI has removed the following clause, which appeared in the previous release: work with
only one life insurer, one general insurer and one health insurer and additionally where permitted by
the Authority, with the Agriculture Insurance Company of India Ltd.
 Meanwhile, the objective of Bima Vahak continues to be a women-centric, dedicated distribution
channel that will ensure accessibility and availability of insurance in every nook and corner of the
country.
 The Bima Vahaks, both corporate and individual, will be authorised to undertake activities like the
collection of proposal information and know-your-customer (KYC) documents and coordinate claims-
related services.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

BimaKavach receives IRDAI's approval for direct insurance broking

 BimaKavach has received a direct insurance broking licence from the Insurance Regulatory and
Development Authority of India (IRDAI), enabling the firm to actively market its customised range of
insurance products for businesses across India.
 The company specialises in digitising and offering instant quotes for cyber and crime insurance,
thereby facilitating online purchases and serviceability. Additionally, it provides tailored solutions and
guidance.
 With a portfolio of 18 insurance products divided into categories such as liability, asset, engineering,
marine, and group health insurance, BimaKavach simplifies the insurance acquisition process for
businesses. Companies can now manage multiple coverage options in one centralised location,
obviating the need for multiple brokers.

19
 Insurance Related CA

IRDAI mandates TP insurance to employees travelling in employer's vehicle

 Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies
providing motor insurance to compulsorily include an inbuilt feature in the Third Party policy (TP) that
will give coverage to employees who travel in their employer's vehicle.
 IRDAI also added that no additional premium will be charged until further directions are issued. This
applies when issuing third-party insurance as per the IMT-29 of the Indian Motor Tariff and when issuing
insurance to private car policies for such vehicles.
 The insurance coverage will be provided as an inbuilt feature under the compulsory Motor Third Party
Liability Section of Private Car Package or Bundled Policies and under standalone policies insuring
Compulsory Motor Third Party Liability.

IRDAI excludes retail sector of general insurance from arbitration clause

 The Insurance Regulatory and Development Authority of India (IRDAI) has removed the retail sector
of the general insurance industry from the arbitration clause, as policyholders have alternative
avenues to resolve their complaints.
 The clause will now only apply to commercial lines of business.
 The clause would continue to be applicable to all existing retail policies until the term of the policy
expires, unless the policyholder requests its replacement with the commercial lines clause.
 For all new retail policies, the clause will be considered deleted, while it will apply to all commercial
policies from the date of renewal falling on or after the date of the circular, which takes effect
immediately.

IRDAI sets up 12-member committee to simplify insurance policy wordings

 The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a committee of
12 members to simplify insurance policy wording.
 The committee, which will be headed by L Viswanathan, a member of the Insurance Advisory
Committee (IAC), will also include the Secretary Generals of the Life Insurance and General
Insurance Council along with the president of the Insurance Brokers Association of India (IBAI) and
the Principal Officer, State Bank of India (Corporate Agent) as well as other senior members of the
insurance industry.
 According to the terms of reference given to the committee, they have to examine the existing policies
and give plain words that are legally correct and enforceable, which clearly specify the obligations
and responsibilities of the parties involved in the contract. It can also suggest specifications like
typefaces for written material.

IndiaFirst Life Insurance Company gets GIFT City IFSC registration

 IndiaFirst Life Insurance Company Ltd (IndiaFirst Life), has become the first Indian life insurance
company to receive the registration to undertake life insurance business in the Gujarat International
Finance Tec (GIFT) City International Financial Services Centre (IFSC).
 IndiaFirst Life‘s entry into the hi-tech and ultra-modern financial ecosystem of GIFT City IFSC will help
create value for the international customers, particularly NRIs (non-resident Indians) banking with our
partner banks – Bank of Baroda and Union Bank of India.
Learn Along:

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 Insurance Related CA
IndiaFirst Life Insurance Company Headquarters: Mumbai CEO: R. M. Vishakha

Gujarat International Finance Tech-City (GIFT City) is a business district currently being constructed in the state of
Gujarat. GIFT City is India’s first operational smart city with the development of world-class infrastructure and
sustainable master planning, which will make GIFT at par or above par with renowned International centres.

IFSCA was established on April 27, 2020 with head office in Gandhinagar with an objective to develop the financial
products and services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC).
IFSCA Headquarters: Gandhinagar, Gujarat Chairperson– K.Rajaraman

IRDAI constitutes taskforce to review existing Bancassurance framework

 The Insurance Regulatory and Development Authority of India (IRDAI) formed a taskforce that will
review the existing bancassurance framework and improve the efficiency of the same amid complaints
of mis-selling/forced selling of policies.
 In order to achieve this objective and considering the interest of the policyholder, IRDAI has set up a
taskforce to examine the bancassurance framework. The committee will be headed by J Meena
Kumari, Executive Director (Life) IRDAI, who will serve as the Chairperson of the taskforce.
 As per the terms of reference for the taskforce, it has to suggest regulatory stipulations on the market
conduct requirements of bancassurance partners amid rising complaints of mis-selling or forced selling
of policies from customers.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

National Health Authority (NHA) organises Accelerator Workshops on ABDM Integration and NHCX
Adoption in association with IRDAI

 The National Health Authority (NHA) and the Insurance Regulatory and Development Authority of
India (IRDAI) have joined hands to operationalize the National Health Claim Exchange (NHCX), a
digital health claims platform developed by National Health Authority.
 The NHCX will serve as a gateway for exchanging claims-related information among various
stakeholders in the healthcare and health insurance ecosystem. The integration with NHCX would
enable seamless interoperability of health claims processing, enhancing efficiency and transparency in
the insurance industry and benefiting the policyholders and patients.
 To encourage adoption of digital health transactions and digitization of patient health records in the
country, NHA has also announced financial incentives under the Digital Health Incentive Scheme
(DHIS) from Jan 2023.
 Under the DHIS, to encourage efficiency in insurance claim processing, there is a provision that for
every insurance claim transaction through NHCX, financial incentives of Rs 500 per claim or 10% of
the claim amount, whichever is lower would be provided for the hospitals.
Learn Along:
IRDAI Headquarters: Hyderabad Chairperson: Debasish Panda

National Health Authority (NHA) is the apex body responsible for implementing India’s flagship public health
insurance/assurance scheme called Ayushman Bharat Pradhan Mantri Jan Arogya Yojana & has been entrusted with the
role of designing strategy, building technological infrastructure and implementation of National Digital Health Mission to
create a National Digital Health Eco-system.

Govt relaxes norms for various small savings schemes including PPF

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 Insurance Related CA
 The government has relaxed the norms for various small savings schemes, including the Public
Provident Fund (PPF) and Senior Citizen's Savings Scheme.
 The amended Senior Citizen’s Savings (Fourth Amendment) Scheme, 2023, now allows depositors to
extend their accounts multiple times upon maturity to benefit from its attractive interest rates for a
longer period.
 The ministry has also amended the rules to allow premature closure of PPF account and changed the
rules governing premature withdrawal under the National Savings Time Deposit scheme.
 Earlier, depositors under the Senior Citizen Savings Scheme could renew the deposit under the
scheme only once for just three years; now they can do it multiple times in blocks of three years.
 The finance ministry has also allowed people to open such accounts within three months of
receiving retirement benefit instead of just one month earlier, in a bid to woo more depositors. Spouses
of government employees who die in harness after the age of 55 will now be allowed to open an account
under this scheme.

RBI tightens norms, raises risk weights for personal loans and credit cards

 The Reserve Bank of India (RBI) has increased the risk weighting for unsecured loans like personal
loans and those on the credit card from 100 per cent to 125 per cent.
 The risk weighting for bank loans to higher-rated NBFCs too has been increased by 25 percentage
points.
 The risk weight for lending to an AAA-rated NBFC is 20 per cent, which will go up to 45 per cent. The
risk weight of AA rated NBFC is 30 per cent, which will now become 55 per cent. For A-rated NBFC,
risk weight is 50 per cent, which will be 75 per cent now.
 Bank credit to NBFC is roughly 10 per cent of the total loans. Of that a proportion would be to AAA-,
AA-, & A-rated NBFCs. The increase in risk weights are applicable for all loans, except to housing
finance companies, and loans to NBFCs which are eligible for classification.
 Similarly, the risk weighting for consumer credit exposure of NBFCs, which are essentially retail loans,
increased to 125 per cent from 100 per cent except housing loans, educational loans, vehicle loans,
loans against gold jewellery and microfinance/self-help group loans.
 The risk weighting on credit card receivables of banks and NBFCs has also been increased. For banks,
it has been increased from 125 per cent to 150 per cent and for NBFCs 100 per cent to 125 per cent.
 The norms on board-approved limits should be implemented by February 29, 2024.
Learn Along:
RBI Headquarters: Mumbai Governor: Shaktikanta Das
Deputy Governors: Swaminathan Janakiraman,
MD Patra, M Rajeshwar Rao and T. Rabi Sankar

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and engaged in the
business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or
other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business.

RBI bars Bajaj Finance from lending under eCOM, Insta EMI Card products

 The Reserve Bank of India (RBI) has barred Bajaj Finance from lending under two products — Insta
EMI and eCOM citing violations of certain provisions of the digital lending guidelines.
 This includes the non-issuance of key fact statements (KFS) to borrowers for these two lending
products and deficiencies in KFS issued for other digital loans sanctioned by the company.
 The Insta EMI card, a virtual card, enables customers to shop for 1 million products offered by the
company at ‗no-cost EMI’. A pre-approved loan of Rs 2 lakh is also available with this card, featuring a
repayment tenure of up to 60 months.
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Bajaj Finance Headquarters: Pune Chairman: Sanjiv Bajaj

Punjab National Bank introduces Digital Gold Loan for hassle-free credit access

 Punjab National Bank (PNB) has launched the PNB Digital Gold Loan scheme. The digital lending
solution launched aims to provide a hassle-free credit to customers to quickly meet their personal as
well as agriculture credit requirements by using gold jewellery and/or ornaments as collaterals.
 The two schemes have been named PNB Gold Loan for the retail segment and PNB Swarnim for the
agriculture segment.
 The PNB Digital Gold Loan scheme allows individuals to borrow amounts ranging from Rs 25,000 to
Rs 25 lakh for personal needs. Additionally, the loan is available for supporting agriculture or allied
activities.
 Borrowers seeking short-term production and/or investment credit for agriculture activities, such as
crop production, land-based activity other than crop cultivation, irrigation, and allied agriculture activities
are eligible for loans of minimum Rs 10,000 to maximum Rs 2 lakh.
 One key feature of PNB Digital Gold Loan is its streamlined digital process, covering
everything from loan application, loan acceptance to loan account opening, security creation,
documentation and disbursement, thus eliminating paperwork hassles.
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PNB Headquarters: New Delhi MD & CEO: Atul Kumar Goel

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