Insurance, pension sector reforms interlinked: Arun Jaitley
India's Finance Minister Arun Jaitley Tuesday expressed hope that the insurance bill would be passed by the end of this year, allowing 49 percent foreign equity in insurance and pension sectors.
Releasing the annual report of the Pension Fund Regulatory and Development Authority (PFRDA) here, Jaitley said the insurance amendment bill is linked with the pension sector.
As per the PFRDA Act, foreign equity in a pension fund cannot exceed 26 percent or such percentage as may be approved for an Indian insurance company under the provisions of the Insurance Act, which ever is higher.
The insurance bill has been referred to a select committee of the Rajya Sabha.
According to Jaitley, the increase in foreign equity limit would bring in more funds into the country and enable launch of new products.
He said that in a democracy, decision-making is a complex issue and hence reforms would happen but at a slow pace.
(Posted on 26-08-2014)