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100% FDI in Insurance: Amendments Planned for Monsoon Session

21 June 20251 min read
BANKING & FINANCE100% FDI in Insurance:Amendments Plannedfor Monsoon Session21 June 2025safalsetu.com

Why in the news

The Centre is preparing Insurance Act changes for the Monsoon Session to lift the foreign investment limit to 100%.

Key facts

  • Foreign insurers may have mostly nonresident directors and foreign CEO or MD.
  • Matches demands long voiced by the U.S. government, USTR and the Coalition of Services Industry (CSI).
Aspect20212025 (proposed)
FDI cap49% raised to 74%100%
Board50% must be resident Indian citizensResidency rules eased
KMPOne resident Indian CEO/MDEased
Other safeguardsDividend and repatriation limits; more disclosuresUnder review

Exam angle

  • Cap path: 49%, 74% (2021), 100% proposed.

Test yourself

1. What is the FDI cap in insurance that the government plans to raise to 100%?

The current limit being raised is 74%.

2. Which regulator's oversight is expected to continue safeguarding insurers after the proposed FDI change?

The government said IRDAI regulation will continue to ensure safeguards.

3. Under the 2021 safeguards, what share of an insurer's board had to be resident Indian citizens?

The 2021 rules required 50% of the board to be resident Indian citizens.