New Delhi: Minister of Finance Nirmala Sitharaman during the monso -motivation of parliament, in New Delhi, Wednesday, July 23, 2025. (PTI Photo/Ravi Choudhary) (PTI07_23_2025_000426a) | Photocredit: Ravi Choudhary
Increasing the BDI limit in the insurance to 100 percent will help the sector to achieve its full potential by growing by 7.1 percent per year that surpasses global growth, informed Minister of Finance Nirmala Sitharaman on Monday.
The Minister of Finance in Union Budget 2025-26 had proposed to increase the limit of foreign investments in the insurance sector from the existing 74 percent to 100 percent.
Increasing the limit will eliminate the need for foreign investors to find Indian partners for the remaining 26 percent, which makes it easier to set up their activities in India, which effectively increases the number of insurers in the country, she said in a written answer to Lok Sabha.
This will attract stable and persistent foreign investments, increase competition, facilitate technology transfer and improve the penetration of insurance in the country, she said.
The decision to increase the DBI component in a certain insurance company is made by its promoters, depending on various factors, such as the capital requirement of the company, requirement of solvency, future business plans, etc., the minister said.
In response to another question, Sitharaman said to increase the coverage under Pradhan Mantri Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSSSS) and Atal Pension Yojana (APY), Local Tax and Grass at Gras at Gras at the Grass at Gras.
Furthermore, she said, a 3 -month ‘financial inclusion of saturation campaign’ was launched throughout the country in 2.70 Lakh Gram Panchayats and urban local bodies (ULBs) from 1 July 2025, with the aim of increasing registrations in PMJJBY, PMBY and APY.
In order to achieve saturation in these Jansuraksha regulations, Kampen are organized on Gram Panchayat and ULBs by banks, giving residents direct access to information and helping to register for the scheme, she said.
The initiative is intended to increase consciousness and to improve participation, so that the bridging of registration in the context of the scheme.
The Center for Financial Literacy (CFL) project was initiated by the reserve Bank of India in 2017 with the aim of using innovative and participatory approaches to financial literacy by the community, the minister said.
On March 31, 2025, a total of 2,421 CFLs were set up throughout the country with one CFL that covers an average of three blocks, she added.
Published on July 28, 2025
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