Financial Daily from THE HINDU group of publications
Friday, Oct 29, 2004
Financial Daily from THE HINDU group of publications Friday, Oct 29, 2004 |
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Money & Banking
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Regional Rural Banks RRBs can act as agent for insurers Our Bureau
Mumbai , Oct. 28 THE Reserve Bank of India has said that Regional Rural Banks (RRBs) may henceforth undertake insurance business as corporate agents, without risk participation. RRBs desirous of doing so must have a positive net worth and must have with the prudential norms on income recognition, asset classification, provisioning, investment norms, exposure norms, the central bank said in a circular issued here today. The bank should not have violated any directive in the last two years and should not have gross NPAs than 10 per cent. The bank should be in net profit during last three years and should not have any accumulated losses, the RBI has said. The RRBs wanting to undertake such business should comply with the IRDA norms and should not adopt any restrictive practice of forcing its customers to go in only for a particular insurance company in respect of assets financed by the bank. The customers should be allowed to exercise their own choice, the RBI has said.
More Stories on : Regional Rural Banks | RBI & Other Central Banks | Insurance
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