Govt keen to clear Insurance Bill

The government is committed to ensure clearance of the Insurance Amendment Bill, which is expected to allow a higher foreign direct investment in the country's insurance sector, a central government minister said.

The Insurance Amendment Bill is under preparation and being given final shape for discussion in Parliament, Minister of State for Finance Namo Narain Meena said on the sidelines of a FICCI-IBA seminar in Mumbai on Tuesday.

At present, FDI investment in insurance companies is allowed up to 26 per cent, which is expected to go up to 49 per cent once the bill is amended.

"The continuance of financial sector reforms is a part of the governments strategy to ensure growth momentum," Meena said.

The government is also considering the enactment of the Pension Fund Regulatory and Development Authority Bill, Meena said.

The Pension Bill is widely expected to give PFRDA, statutory regulatory status in the pension sector and more freedom to subscribers for investing in their retirement money.

This would help to provide more security to workers in the unorganised sector in the country, the Minister said.

Noting that some impact of the global finanical crisis has been felt in the credit, equity and forex markets in the country, Meena said that the current challenge for policy-makers is to strike an optimum balance between preserving financial stability, maintaining price stability, anchoring inflation and sustaining growth.

Though the global financial conditions have shown improvement in recent months, uncertainties relating to the revival of the global economy remain, he said.