The state-owned bank said it has received approval from the RBI to enter the insurance business through a joint venture.
The Central Bank of India has received approval from the Reserve Bank of India (RBI) to venture into the insurance business through a joint venture with the Generali Group. The collaboration will focus on Future General India Insurance Company Limited (FGIICL) and Future General India Life Insurance Company Limited (FGILICL).
RBI approval and compliance requirements
In a regulatory filing on Friday, the state-owned bank confirmed that the RBI had approved the letter dated November 21, 2024. The bank noted that the approval is subject to ongoing compliance with RBI conditions and approval from the Insurance Regulatory and Development Authority of India. (IRDAI).
Competition Commission of India clearance
The Competition Commission of India (CCI) had earlier approved Central Bank of India’s acquisition of stake in FGIICL and FGILICL in October. This is an important step in the bank’s strategy to diversify its operations in the insurance sector.
Overview of Insurance Offerings
FGIICL offers a wide range of insurance products, including:
- Personal insurance
- Commercial insurance
- Social and Rural Insurance
FGILICL complements these offerings with products such as:
- Savings and Investment Plans (ULIP)
- Term Insurance
- Health insurance
- Child Plans
- Retirement plans
- Group and Rural Insurance Schemes
Background: Acquisition of stake in Future Enterprises
In August 2024, the Central Bank of India announced its successful bid to acquire the stake of debt-laden Future Enterprises Limited in life and general insurance enterprises. This acquisition paved the way for its strategic entry into the insurance domain in partnership with Generali Group.
This development underlines the Central Bank of India’s commitment to expand its business horizons and capitalize on growth opportunities in the financial sector.