In the wake of growing opposition from banks to a Government directive on switching their insurance business to a broking model, the finance ministry on Tuesday set up a panel comprising members from the RBI, Irda and bankers, to arrive at an amicable solution.
"It was decided that we will set a smaller group to work on the issue, representing banks, insurance companies, RBI and Irda, to come out with a solution that is acceptable to all. I think we should be in a position to resolve this issue very quickly," Indian Banks
Association chief and PNB chairman KR Kamath told reporters at the customary post-policy press meet.
He was reacting to questions from reporters on the outcome of the meeting that bankers had with the financial services secretary Rajiv Takru here this morning on the insurance broking model order of the government, and where the decision was taken.
While accepting that the move is good and customer- centric, Kamath said, "The issue is how do you want to do it. So the issue is that instead of selling one company's product, banks should give option to customers. While each model has its own advantages and disadvantages, one particular model may not be the right way to do."