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RBI Grants Approval for CBI to Enter Insurance Sector in Partnership with Generali Group.

Banking & Finance | Dated: 30 Nov 2024

The RBI, on November 21, approved the Central Bank of India's entry into the insurance business through a joint venture with the Generali group under Future Generali India Insurance Company and Future Generali India Life Insurance Company.

🎯 Key Highlights:

  • - This approval is subject to continuous compliance with conditions set by the RBI and approval from the sectoral regulator IRDAI, according to a filing made by the bank on Friday.
  • - This approval follows the Committee of Creditors' decision to sell Category 1 assets of Future Enterprises' stake in FGILICL, and FGIICL declaring the State-owned lender as the successful bidder in August. In October, the Competition Commission of India also approved the proposed combination.

💡 Other Important Facts:

  • (i) M.V. Rao, MD and CEO of Central Bank of India, mentioned in an investor call last month that the bank had received the CCI approval to acquire 25.18% of equity shares in the life insurance division of Future Generali and 24.91% in the non-life division.
  • (ii) Upon completion of the process, the bank will have two more joint ventures in addition to the existing ones in home finance and financial services.

📚 Test Your Knowledge:

Recently, the Reserve Bank of India (RBI) granted approval for CBI to enter the insurance sector in partnership with which company?

Correct Answer: Generali Group

🚀 Quick Recap: