Irdai may allow banks to hold over 10% stake in multiple insurance firms

Irdai chairman says considering proposal to change rules for lenders

The insurance regulator may allow public sector banks to hold over 10 per cent stake in multiple insurance companies, given that they limit their promoter control to one entity and remain just an investor in others with no say in management decisions.  

According to rules, a bank can’t promote more than one insurance company in the same segment. The merger of 10 public sector banks, however, has created a problem as many of these banks are promoters of insurance firms. “It is not prohibited by regulation but it is prohibited because there will be conflict of interest. We can take