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The government-owned bank said it has got 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 partnership with Generali Group. The collaboration will focus on Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).
RBI Approval and Compliance Requirements
In a regulatory filing on Friday, the state-owned bank confirmed that RBI had approved a letter dated November 21, 2024. The bank noted that this approval is subject to ongoing compliance with RBI’s conditions and clearance from the Insurance Regulatory and Development Authority of India (IRDAI).
Competition Commission of India Clearance
The Competition Commission of India (CCI) had earlier, in October, approved the Central Bank of India’s acquisition of stakes in FGIICL and FGILICL. This marks a significant step forward in the bank’s strategy to diversify its operations into 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 (ULIPs)
- Term Insurance
- Health Insurance
- Child Plans
- Retirement Plans
- Group and Rural Insurance Plans
Background: Acquisition of Future Enterprises’ Stake
In August 2024, the Central Bank of India announced its successful bid to acquire debt-laden Future Enterprises Ltd’s stakes in the life and general insurance ventures. This acquisition paved the way for its strategic entry into the insurance domain in partnership with Generali Group.
This development underscores the Central Bank of India’s commitment to expanding its business horizons and leveraging growth opportunities in the financial sector.