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Parliament passes bill to allow 100% foreign investment in insurance sector

Parliament has cleared the Sabka Bima Sabki Raksha Bill, allowing 100% foreign investment in insurance companies, with the government assuring strong safeguards for policyholders.

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Nirmala Sitharaman

Parliament on Wednesday cleared a major amendment to insurance laws, paving the way for 100 per cent foreign direct investment (FDI) in insurance companies, up from the earlier cap of 74 per cent. The Rajya Sabha passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, a day after it was approved by the Lok Sabha.

Replying to the debate, Finance Minister Nirmala Sitharaman said the move is aimed at attracting new insurers, intermediaries and allied service providers, which would expand the insurance ecosystem and lead to net employment generation.

Safeguards for policyholders highlighted

Addressing concerns over policyholder protection, Sitharaman said the Insurance Regulatory and Development Authority of India (IRDAI) has mandated a minimum solvency ratio of 1.5 for all insurance companies, meaning their assets must be at least one-and-a-half times their liabilities.

She added that insurers are also required to make provisions for liabilities classified as “incurred but not reported” and “incurred but not enough reported,” and profits can be calculated only after accounting for these obligations. According to the minister, these norms ensure adequate safeguards for policyholders.

LIC performance cited amid reforms

The finance minister said the government continues to strengthen the Life Insurance Corporation of India (LIC), citing its performance in the last financial year. LIC’s total assets under management rose by 6.45 per cent to ₹54.52 lakh crore in FY 2024-25, while its solvency margin improved to 2.11 from 1.98. The net value of new business also increased to ₹10,011 crore from ₹9,583 crore a year earlier.

Employment and consultation process

Sitharaman rejected claims that the amendments would hurt employment, stating that a deeper insurance market would benefit agents, brokers and intermediaries through wider outreach and more products.

She also countered opposition allegations that the bill was rushed, noting that consultations began in November 2024 with states and Union Territories. Inputs were also sought from insurers, regulators, industry bodies and the public, with over 13,000 responses received through the department’s website.

Wider changes under the bill

The legislation raises the FDI limit in insurance companies to 100 per cent and reduces the net-owned fund requirement for foreign reinsurance companies operating in India from ₹5,000 crore to ₹1,000 crore. It also broadens the definition of intermediaries to include managing general agents and insurance repositories.

The bill amends the Insurance Act, 1938, the LIC Act, 1956, and the IRDAI Act, 1999. Sitharaman said the changes align with the government’s long-term goal of achieving “Insurance for All by 2047” and improving ease of doing business.

Under the new framework, all insurance companies and intermediaries will be required to include the word “insurance” in their names for greater customer clarity. The amendments also introduce the provision for suspension of intermediary licences instead of immediate cancellation, allowing time for compliance.

Opposition voices concerns

Several opposition members opposed the bill in the Rajya Sabha, alleging it weakens accountability and prioritises shareholders over policyholders. They argued that insurance should primarily function as a social security mechanism rather than just an investment avenue.

Despite the criticism, the government maintained that the reforms would strengthen regulation, expand coverage, and support the growth of affordable insurance, especially in rural areas.

India News

PM Modi-Xi meeting: Xi says India, China can learn from each other’s strengths

PM Modi and Xi Jinping held bilateral talks on the sidelines of the BRICS Summit, with discussions focused on border peace, bilateral relations and cooperation.

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China President Xi Jinping

Chinese President Xi Jinping said India and China can learn from each other’s strengths and support one another as he held bilateral talks with Prime Minister Narendra Modi in New Delhi on Saturday.

The meeting took place on the sidelines of the BRICS Summit 2026 during Xi’s two-day visit to India. It was his first visit to the country in seven years. The discussions covered bilateral relations, border issues, trade and investment.

PM Modi stresses importance of border peace

Prime Minister Narendra Modi emphasised that peace and tranquillity in the border areas are essential for the continued development of India-China relations.

He also underlined the need for both countries to follow existing agreements and understandings related to border issues. The two leaders reaffirmed their commitment to pursuing a fair, reasonable and mutually acceptable resolution of the boundary question while keeping the long-term interests of both countries in mind.

The two sides also noted steady progress in bilateral relations since Modi and Xi last met in Tianjin in August 2025.

Modi stressed that differences between India and China should not turn into disputes. He said the relationship should be guided by three principles — mutual respect, mutual sensitivity and mutual interest.

Xi calls for long-term India-China ties

During the meeting, Xi Jinping said China has consistently viewed its relationship with India from a strategic and long-term perspective.

He recalled that he and Modi have met 21 times over the years and said these meetings had helped guide India-China relations towards steady development.

Xi said that despite differences in their national conditions, India and China could learn from each other’s strengths, support one another and pursue common development.

He also highlighted the responsibilities of India and China as two of the world’s most populous countries and important members of the Global South.

Both sides review bilateral relations

The two leaders carried out a comprehensive review of India-China relations and discussed measures to expand engagement.

The talks also highlighted the importance of maintaining peace and tranquillity along the border and continuing cooperation based on mutual respect, mutual sensitivity and mutual interest.

After the meeting, Modi said the two sides had reviewed the full range of India-China relations. He also conveyed India’s best wishes to China ahead of its BRICS presidency next year.

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Bank holiday on September 14: Banks closed in these cities

Banks will remain closed on September 14 in nine cities, including Mumbai, Bengaluru, Chennai and Hyderabad, due to Ganesh Chaturthi and related festival observances.

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Bank holidays

The bank holiday on September 14 will affect branches in select cities across India as banks observe a regional holiday for Ganesh Chaturthi and related festival observances.

September 14, 2026, falls on a Monday and is listed as a holiday for Ganesh Chaturthi, Ganesh Puja, Varasiddhi Vinayaka Vrata, Vinayakar Chathurthi and Hartalika in certain banking centres.

Bank holiday on September 14: Full city-wise list

According to the holiday listings, bank branches will remain closed on September 14 in the following centres:

CityFestival/occasion
BelapurGanesh Chaturthi/Ganesh Puja/related observances
BengaluruGanesh Chaturthi/Ganesh Puja/related observances
BhubaneswarGanesh Chaturthi/Ganesh Puja/related observances
ChennaiGanesh Chaturthi/Ganesh Puja/related observances
HyderabadGanesh Chaturthi/Ganesh Puja/related observances
MumbaiGanesh Chaturthi/Ganesh Puja/related observances
NagpurGanesh Chaturthi/Ganesh Puja/related observances
PanajiGanesh Chaturthi/Ganesh Puja/related observances
VijayawadaGanesh Chaturthi/Ganesh Puja/related observances

The holiday is therefore not applicable to bank branches across the entire country. Bank holidays in India vary by state and banking centre, depending on local festivals and occasions.

Why are banks closed on September 14?

September 14 marks Ganesh Chaturthi in 2026. The festival falls on Monday this year, with the date confirmed as September 14.

The banking holiday calendar uses different names for the observance across centres, including Ganesh Chaturthi, Ganesh Puja, Varasiddhi Vinayaka Vrata, Vinayakar Chathurthi and Hartalika.

The National Stock Exchange’s 2026 holiday circular also lists September 14 as a trading holiday for Ganesh Chaturthi.

Will online banking services work on September 14?

The closure applies to physical bank branches in the affected centres. Customers can generally continue to use digital banking channels such as mobile banking, internet banking and UPI, although specific services can depend on the bank.

Customers who need to visit a branch for cash deposits, withdrawals, account-related work or other in-person services should check the holiday status of their particular branch before visiting.

What about banks in other cities?

Banks in cities that are not covered by the September 14 regional holiday are not automatically closed because of Ganesh Chaturthi.

The bank holiday calendar is centre-specific, so customers should check their bank’s branch holiday schedule before planning a branch visit.

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Harish Rawat quits Congress posts after ED raid on aide

Former Uttarakhand chief minister Harish Rawat resigned from two Congress posts after the ED searched his aide Chandan Singh Jeena’s premises in a money laundering probe.

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Harish Rawat

Former Uttarakhand chief minister Harish Rawat has resigned from two organisational positions in the Congress after the Enforcement Directorate (ED) conducted searches at the premises of his personal assistant, Chandan Singh Jeena.

Rawat announced his decision on Friday, saying he did not want the controversy surrounding his close associate to weaken the Congress’s campaign against corruption. He stepped down as a member of the Uttarakhand Pradesh Congress Committee executive and as a permanent invitee to the Congress Working Committee.

The ED searches were linked to a money laundering investigation concerning alleged irregularities in the 2016 Gram Panchayat Vikas Adhikari examination conducted by the Uttarakhand Subordinate Service Selection Commission (UKSSSC).

What ED recovered from Rawat’s aide

The ED carried out searches at multiple locations in Dehradun, including premises connected with former UKSSSC officials, a private computer agency involved in processing OMR sheets and alleged middlemen.

According to the agency, its search of Jeena’s residence resulted in the seizure of Rs 32 lakh in unaccounted cash, gold coins and chains weighing around 200.5 grams, and 12 luxury watches.

The gold comprised 13 coins and seven chains. The watches included brands such as Rolex, Rado, Piaget, Movado, Tissot and Casio Edifice, according to the ED.

The agency also said bank accounts belonging to Jeena and his family members containing Rs 52.16 lakh were frozen. His mobile phone was seized for forensic examination.

The ED alleged that Jeena had made substantial cash expenditures for which no legitimate source of income could be established. It also said unaccounted cash, jewellery and other valuables were recovered from some former UKSSSC officials and associated individuals.

What is the UKSSSC exam case?

The ED’s money laundering investigation stems from four FIRs registered by the Uttarakhand Police and Vigilance Bureau over alleged irregularities in the 2016 Gram Panchayat Vikas Adhikari examination.

According to the agency, OMR answer sheets were allegedly removed from secure custody and taken to the residence of the commission’s then secretary. Roll numbers of under-filled answer sheets were recorded and passed to personnel of a private computer agency.

The ED has alleged that answer bubbles were subsequently filled or altered fraudulently before the sheets were resealed, with illegal payments allegedly routed through middlemen.

Jeena is currently serving as Rawat’s personal assistant. He had earlier served as Rawat’s officer on special duty when Rawat was Uttarakhand chief minister between 2014 and 2017.

What Harish Rawat said

Reacting to the allegations, Rawat said he found it difficult to believe that Jeena had been involved in wrongdoing. He acknowledged Jeena’s association with him and said the truth behind the allegations would emerge with time.

Rawat said that if evidence showed Jeena had tampered with OMR sheets in the recruitment examination, he would be ashamed of such conduct, while adding that he did not believe the allegation.

Explaining his resignation, Rawat said Uttarakhand politics was entering an election phase and that attempts were being made to create a narrative against him.

He said Congress and its workers were fighting corruption and that he did not want any action associated with him to weaken the party’s campaign. Since he did not hold a government position from which he could resign, he chose to step down from his organisational responsibilities in the party.

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