RBI finalises guidelines for banks to enter insurance biz

The Reserve Bank of India today also finalised the guidelines for banks to enter the insurance business today. Banks with networth of Rs 1000 crore and above can set up a subsidiary or a joint venture and those with a networth of Rs 500 crore s and above can opt for the broking or corporate agency set up.Besides being profitable for more than three years, all banks have to maintain their capital to risk weighted assets ratio of 10% and net levels should be not be more than 3%. It will be keenly watched out for on how the industry takes on this big challenge of NPA's and the business risks involved.