Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules 2021

  • August 21, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules 2021

Subject – Economy

Context – RBI, IRDAI nod must for FDI in bank­led insurance.

Concept –

  • Applications for foreign direct investment in an insurance company promoted

by a private bank would be cleared by the RBI and IRDAI to ensure that the 74% limit of overseas investmentis not breached.

  • The changes took effect following amendments to the Foreign Exchange Management (Non­debt Instruments) Rules, 2019, as per the gazette notification issued by the Finance Ministry.
  • In March, Parliament passed a bill to raise the foreign direct investment (FDI) limit in the insurance sector from 49% to 74%.
economy Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules 2021