New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The FDI limit in insurance sector for companies that

    write insurance cover is ______
    A 26% Correct Answer Incorrect Answer
    B 49% Correct Answer Incorrect Answer
    C 51% Correct Answer Incorrect Answer
    D 74% Correct Answer Incorrect Answer
    E 100% Correct Answer Incorrect Answer

    Solution

    At present, the upper limit for FDI is 74% into companies that write insurance cover.    The foreign direct investment (FDI) limit in the insurance sector under the automatic route was increased to 74% from 49% earlier, in June 2021 by passing the Insurance (Amendment) Bill, 2021. The Bill amended the Insurance Act, 1938. FDI in the insurance sector was increased from 26% to 49% in 2015.   For insurance intermediaries, like brokerages and others, who bring together customers and insurance firms, 100% foreign investment is allowed.

    Practice Next

    Relevant for Exams: