Current Affairs

RBI Permits Reinsurance Brokers to Open Foreign Currency Accounts

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
RBI Permits Reinsurance Brokers to Open Foreign Currency Accounts RBI Permits Reinsurance Brokers to Open Foreign Currency Accounts Reviewed by Neha on April 16, 2019 Rating: 5

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