RBI Permits Reinsurance Brokers to Open Foreign Currency Accounts

April 16, 2019
Reinsurance Brokers have been permitted by the Reserve Bank of India (RBI) to open non-interest bearing foreign currency accounts with banks for undertaking transactions.
RBI Permits Reinsurance Brokers to Open Foreign Currency Accounts

What is a Foreign Currency Account?

  • Foreign currency account refers to a bank account held or maintained in currency other than the currency of India or Nepal or Bhutan.

How it happened?

  • Earlier, the Insurance Regulatory and Development Authority of India (IRDAI) had issued a notification and then the RBI issued Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 - Opening of Foreign Currency Accounts by Re-insurance and Composite Insurance brokers.

About the Insurance Regulatory and Development Authority of India (IRDA):

  • IRDA is tasked with regulating and promoting the insurance and re-insurance industries in India.
  • IRDA was founded in 1999.
  • It is headquartered at Hyderabad.
  • It's Chairperson is Subhash Chandra Khuntia.

Question:

Q. Who have been permitted by the Reserve Bank of India (RBI) to open non-interest bearing foreign currency accounts with banks for undertaking transactions?
a. Reinsurance Brokers
b. Insurance Brokers
c. Stock Brokers
d. Real Estate Brokers

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