RBI has relaxed norms for participation of Non-Banking Finance Companies – NBFCs in insurance joint ventures. In a notification issued in Mumbai today, RBI said that it will allow NBFCs to invest more than 50 percent of their total equity in insurance joint ventures but on a case to case basis. The notification adds that the relaxation will also be subject to compliance by the NBFC with all other regulatory conditions.

As per existing norms, an NBFC cannot hold more than 50 per cent of the paid-up capital of an insurance joint venture.