Rajya Sabha passes insurance amendment bill 2021 with permission to increase FDI limit to 74% from 49%
Insurance (Amendment) Bill, 2021 which seeks to amend the Insurance Act, 1938 has been passed in Rajya Sabh. It will increase the limit of FDI allowed in Indian insurance companies to 74% from the current 49% simultaneously with the provision for removing the restrictions on control and ownership of the insurance companies.
However the Finance Minister, Nirmala Sitharaman said a higher FDI limit of 74 per cent is not a compulsion to be followed by every insurance company and it’s only the upper limit.
She assured at the same time that existing reservation policy will continue in the insurance sector.
