According to a press note issued by the department, the decision will take effect from the date of FEMA (Foreign Exchange Management Act) notification.
The Insurance (Amendment) Bill, 2021, was passed by Parliament in March. The Bill amended the Insurance Act, 1938.
FDI in the insurance sector was increased from 26 per cent to 49 per cent in 2015. The announcement for hiking the FDI limit was made in the Union Budget 2021-22 on February 1.
The new arrangement is expected to benefit 23 private life insurers, 21 private non-life insurers and seven specialised private health insurance companies.