Injeti Srinivas Committee submits report

October 23, 2020

On October 22, 2020, the Injeti Srinivas Committee submitted its second interim report to the chairperson of International Financial Services Centres Authority (IFSCA). It was an IFSCA Expert Committee that was constituted to study about the international retail business development in IFSC.

Background

The committee as constituted to make recommendations on promoting international retail business in IFSC (International Financial Service Centre). It was also constituted to

Suggest potential strategies to make IFSC attractive for international financial services.
Provide a roadmap for future growth of international retail business in IFSC
Examine and recommend issues that are important in the development of IFSC.

Recommendations of the committee

To allow persons of Indian Origin and permanent non resident Indians to buy life insurance policies in companies that are set up in IFSC. Also, they should be allowed to pay the premium in currency of their own choice.
The non resident Indians should be permitted to buy portable life insurance policies. These policies provide them flexibility to pay premium in Indian rupees.
The permanent residents should be allowed to buy Overseas Health Insurance. This shall be facilitated through intermediaries in IFSC
The insurance companies should be allowed to provide insurance products to family members of non resident Indians and persons of Indian origin as well.
The Insurance companies in IFSC in should be allowed to offer baggage losses, accident cover, travel Health Insurance and documents lost cover.
The IFSC should aim to to become an aviation insurance hub for the world
More of the Asian and African insurance companies should be encouraged. This is because they have huge potential than the rest of the world.
The Indian investors should be allowed to set up insurance companies to promote insurance abroad.

Significance

According to the committee the Indian Insurance sector is underperforming as compared to those in developed economies. The committee believes that IFSC it has potential to to become an engine of economic growth for India.

IFSC GIFT City

GIFT City is Gujarat International Finance Tech City. It is the first International Financial Services centre of India. It caters to customers outside the Indian jurisdiction. It will deal with finance flows and services across borders.