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All scheduled UCBs (Urban Cooperative Banks) having a minimum net worth of Rs.50 crore were permitted to undertake insurance business as corporate agents without risk participation. All other UCBs were permitted to undertake insurance business on a referral basis, without any risk participation, through their network of branches.
Insurance Business by UCBs: Liberalization of Norms
UCBs other than those classified in Grade III or IV, having a minimum net worth of Rs 10 crore and registered in States that have entered into MoUs with the Reserve Bank or registered under the Multi State Co-operative Societies Act, 2002 were permitted to undertake insurance agency business as corporate agents without risk participation.
Taking into consideration the representations from UCBs, Reserve Bank of India has notified on 15th May 2008 that it has been decided to dispense with the minimum networth criteria for undertaking insurance business as corporate agent without risk participation for UCBs, with other conditions remaining unchanged.
Accordingly, UCBs, other than those classified as Grade III and IV, and registered in states that have entered into MoU with the Reserve Bank or under Multi-State Cooperative Societies Act, 2002, are permitted to undertake insurance business as corporate agent, without risk participation, without the prior approval of Reserve Bank of India.
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