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Bancassurance: IRDAI Unlikely to Impose Curbs

3 July 20251 min read
BANKING & FINANCEBancassurance:IRDAI Unlikely toImpose Curbs3 July 2025safalsetu.com

Why in the news

Private life insurers got relief as IRDAI signalled no crackdown on bancassurance despite 2024 misselling worries.

Key facts

  • IRDAI view: no cap, misselling not alarming, facilitate rather than mandate.
  • 2024 misselling concerns came from the Finance Minister, the then IRDAI Chair, the RBI Governor and the DFS Secretary.
  • DFS: no forced sales; RBI: drafting anti-misselling guidelines.
  • IPOs: listing not mandatory.
Effect of a capEstimate
Bank fee incomeDown 15-30%
Net profitDown up to 12%

Exam angle

  • UFBP complaints fell 10.6% in FY24; IRDAI task force formed October 2023; FY24 bancassurance income ₹14,500 crore.

Test yourself

1. What did IRDAI indicate about a cap on the bancassurance distribution model?

The notes say IRDAI was unlikely to restrict bancassurance and set no cap.

2. How much did bancassurance earn banks in FY24, as per the notes?

FY24 bancassurance earnings were ₹14,500 crore, about 2% of bank revenue.

3. When did IRDAI form a task force to improve bancassurance efficiency?

The task force was formed in October 2023.

This topic is part of Daily Current Affairs 3 July 2025 (17 topics).

All topics of the dayDay quizJuly 2025

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