Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
Considering the contribution of NBFCs in development in financial markets in India, RBI has given green signal to NBFC to enter into Insurance companies Business. The Reserve Bank of India has laid down the guidelines for the entry and workings of the NBFCs in the insurance sector. With the participation of NBFC’s in Insurance Sector, the Insurance companies can meet their capital and other ancillary requirements as per IRDAI and carry on its activities smooth
NBFCs are required to obtain prior approval of the Insurance companies Regulatory and Development Authority of India (IRDAI[1]) and Reserve Bank of India before entering into the insurance business.
Insurance Agency Business:
NBFCs registered with Reserve Bank of India may take up insurance agency business on the fee basis and without risk participation subject to the following conditions:
The provisions of NBFC Directions on Acceptance of Public Deposits exempts the deposits from a relative of a director within the purview of Public Deposits. NBFCs shall take a separate application form from such depositors with suitable notice to their attention that such deposits would be treated as deposits from relatives. NBFCs are vested with the burden to prove that the deposits have been received from the relative of directors. It also requires that the relationship between the depositor and the specific directors of the company would be material on the date of acceptance of such notice.
In case more than one company in the same group of the NBFC wishes to take a stake in the insurance company, the contribution by all Insurance companies in the same group shall be counted for the limit of 50 percent prescribed for the NBFC in an insurance Joint Venture.
Read our article:Major challenges faced by NBFCs & their solutions
Artificial intelligence, or AI, is rapidly changing the image of the financial sector. Banks, N...
India and the United Arab Emirates (UAE) have a long and expanding trade relationship. Trade fl...
The International Financial Services Centres Regulatory Authority (IFSCA) is the country's firs...
Reserve Bank of India (Co-Lending Arrangements) Directions, 2025, issued by the Reserve Bank of...
The Alternative Investment Fund (AIF) market in India is expanding, and there is a need to intr...
Are you human?: 4 + 4 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Reserve Bank of India gave non-bank lenders extended time to adhere to the new rules for upgradation of non-per...
13 Sep, 2022
Leading non-banking financial company (NBFC) Standard Capital has lately drawn notice for its ground-breaking Zero-...
23 Oct, 2024