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%.