Pankaj Chaudhary,Minister of State for Finance

M Nagaraju, Scretary, DFS, mentioned that to ensure greater consistency, consumer protection, transparency, and grievance redressal, the department is proposing setting up a unified forum where regulators and authorities in the pension sector can collaborate

New Delhi: Minister of State for Finance, Pankaj Chaudhary said the Department of Financial Services is in advanced stages of finalisation of the Draft Insurance Laws Amendment Bill which will be presented in Parliament, shortly.

He further said that increasing the FDI limit to 100 per cent from 74 per cent will not only attract foreign capital and advanced technology but will also improve insurance penetration, providing increased insurance coverage at affordable premiums to a larger section of the population.

This move is also expected to improve technology advancements as well as better customer engagement processes, he said at a Post Budget event in New Delhi.

Finance Minister Nirmala Sitharaman in her Budget speech had proposed to raise the foreign investment limit to 100 per cent from existing 74 per cent in the insurance sector as part of new-generation financial sector reforms including reduction in paid-up capital for insurers, and provision for composite license.

To enhance the FDI limit, the government will have to bring amendments to the Insurance Act 1938, the Life Insurance Corporation Act 1956, and the Insurance Regulatory and Development Authority Act 1999.

The bill will also simplify certain procedure and rules. The intent of the Department of Financial Services (DFS) is to get the bill introduced during the current Budget session..

The Department of Financial Services, Ministry of Finance organised a post Budget Webinar yesterday on issues like Regulatory, Investment and EODB reforms in an effort to understand the unique perspectives from various stakeholders that can help implement the budget announcements for the year 2025-26, ensuring synergy among stakeholders.

Speaking at the forum M Nagaraju, secretary, DFS, mentioned that to ensure greater consistency, consumer protection, transparency, and grievance redressal, the department is proposing setting up a unified forum where regulators and authorities in the pension sector can collaborate.

For the webinar on Regulatory, Investment and EODB(ease of doing business) reforms, the sessions witnessed participation of ministers of respective ministries, senior government officials, subject matter experts, industry leaders, bankers, FPOs and other related stakeholders.

The deliberations focussed on budget announcements related to FDI in Insurance Sector, Credit Enhancement Facility by NaBFID , Merger of Companies, Bilateral Investment Treaties, Investment Friendliness Index of States, Expanding Services of India Post Payment Bank, Grameen Credit Score, KYC Simplification, Pension Sector, Regulatory Reforms & High-Level Committee for Regulatory Reforms, FSDC Mechanism, Jan Vishwas Bill 2.0 .

The theme “Making India investment friendly,” during the webinar, covered Budget announcement on FDI in Insurance Sector, Credit Enhancement Facility by NaBFID, Merger of Companies, Bilateral Investment Treaties, and Investment Friendliness Index of States.

Among the suggestions received during the panel discussion on this theme, included, tax rationalisation, EODB such as simplification of licensing process for new entrants, liberalising investment norms, robust dispute resolution mechanism, use of e-governance in streamlining processes, minimize domestic regulatory bottlenecks, creating awareness within the government and build capacities, dedicated national law for foreign investment promotion in India, deepening of bond markets through participation of Insurance and pension funds, retail investors etc.

During the session on Ease of access to financial services / Credit, the discussions were held on the budget announcements regarding expanding services on India Post payment bank (IPPB), KYC simplification and Grameen credit score.

Experts lauded the budget announcements and opined that expansion of IPPB will take banking services to remote areas, empower rural communities by providing access to essential financial tools and will deepen financial inclusion.

Grameen credit score will provide an accurate credit profile of rural borrowers. It will not only give opportunities to rural population in availing affordable credit but will also provide opportunities to banks for increasing their business.

KYC simplification will enhance the ease of customers in availing banking and other financial services. The discussions held during the webinar enriched large number of attendees.

For In the Theme: ” Rationalization of Legal & Regulatory Compliances”, Forum for Regulatory Coordination and Development of Pension Products, high-level committee for regulatory reforms, FSDC Mechanism and Jan Vishwas Bill 2.0 were discussed.

It was emphasised by the speakers that ‘Viksit Bharat@2047’ will need a regulatory framework that is based on trust and is responsive to technological changes and global policy developments.

Speakers highlighted that, Government needs to reduce compliance burden and Imprisonment and / or fine should be substituted with penalties, which are civil in nature, for all minor, procedural and technical non-compliances. Such a framework will facilitate the ease of doing business for all citizens.