Open insurance, banking sectors further, says UK

The Reserve Bank of India should further liberalise banking and insurance sector but continue its cautious approach, especially towards certain sectors such as commercial real estate, UK s Financial Services Authority chairman Adair Turner said on Tuesday. India does need a process of financial deepening. If you look at the credit-to-GDP, deposit-to-GDP, the financial sector is underdeveloped, Turner said. The pending financial sector reforms include raising the foreign direct investment (FDI) cap in private sector insurance companies from 26% to 49% a Bill for which is pending in Parliament. Appreciating the RBI s conservative approach, Turner said it would be better to ...

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