Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: Regulator Asks Insurers to Report Ownership Structure by January 18
- The Insurance Regulatory and Development Authority of India (IRDAI) has asked all insurers to report their ownership structure and control within the deadline of January 18.
- The guidelines on Indian-owned and controlled insurers, signed by IRDAI Chairman T S Vijayan, were issued by the regulator on October 19, 2015 and the three-month deadline ends on January 18.
- The stipulations are applicable to all the insurers, both life as well as non-life, irrespective of the extent of foreign shareholding.
- The guidelines also provide, on an application made to the authority, for an extension of the period of compliance by a further three months.
- According to IRDAI guidelines, which were issued last year, foreign investors in a domestic insurance joint venture can nominate non-CEO-type key management personnel, provided such appointments are approved by the board where the majority of the directors, excluding independent members, are the nominees of domestic promoters.
- Under the insurance laws, majority of directors, excluding independent directors, should be nominated by the domestic promoters/investors.
- In addition, they will nominate the chairman in cases where the chairman has a casting vote, it adds.
- While some insurers have applied to the Foreign Investment Promotion Board (FIPB) as well as the authority, seeking approval for change in their shareholding pattern and revision in the limit of foreign investment, a majority of them has not done so as there has been no change in their ownerships following the increased FDI as their foreign partners have not taken a call.
- It may be emphasised that the guidelines provide a maximum period of six months for compliance from the date of issue, an IRDAI notification dated December 23, 2015 said.
- So far, nearly a dozen foreign companies expressed their interests to increase their stake in their JVs here following hike in FDI to 49 per cent last year.
- However, only French major Axa (with Bharti) and British company Standard (with HDFC) are the only two foreign companies which have increased their stakes in their JVs here and accordingly made the compliance reporting so far.
- Axa has said it will raise stake in both life and non-life insurance ventures with Bharti Enterprises, leading to foreign capital inflow of about Rs 1,300 crore.
- Similarly, Standard will raise stake in life insurance venture with HDFC, leading to foreign capital inflow of around Rs 1,700 crore.Liberty Videocon General Insurance is likely to get up to Rs 300 crore of foreign capital through hike in FDI to 49 per cent.
- “The FDI hike to 49 per cent is already under process and we are expecting Rs 200-300 crore to come through this route and it is likely to be completed by next fiscal,” he added.
Important Banking News: Bank of Baroda Debuts on Social Media
- The state-owned Bank of Baroda has entered the social media space by launching its Facebook page and Twitter handle as part of its efforts to restore its image that has been hit by the alleged Rs 6,100-crore remittance scam.
- An unaccounted Rs 6,172 crore was purported to have been remitted from a Delhi branch of Bank of Baroda to Hong Kong camouflaged as payments for non-existent imports such as cashew, pulses and rice. The alleged scam came to light in October 2015.
- BoB will be available on Facebook and Twitter and its presence will extend to other social marketing mediums in due course, BoB said in a statement.
- Social media is increasingly becoming an important mode of communication and influence, it said.