The Union Cabinet has given its approval for restructuring the capital base for the state-run UCO Bank, Finance Minister P Chidambaram said today.
Chidambaram also informed that the cabinet has approved the Insurance (Amendment) Bill to raise foreign direct investment in private sector from 26 per cent to 49 per cent. He added that the amendments will remove archaic and redundant provisions in the legislations and incorporate provisions to provide IRDA with flexibility to discharge its functions effectively.
The Cabinet has also approved the Life Insurance Corporation (Amendment) Bill, 2008 to raise the paid up capital of LIC from Rs 5 crore to Rs 100 crore. The bill will be tabled in Parliament.