Archive · 9 Jun 2025
Govt Directs Banks to Prioritize Insurance Sales
The government wants banks to sell more insurance along with their usual banking services.
Banks will now focus on insurance in smaller cities to help more people get it.
This plan aims for everyone to have insurance by 2027.
It means banks will partner with insurance companies.
This is a change from earlier when the government wanted banks to focus only on banking.
DFS directs Public Sector Banks (PSBs) to focus on insurance distribution.
The directive supports the government’s goal to expand insurance access.
PSBs are to prioritize insurance sales in Tier-2 and Tier-3 cities.
The move marks a change from the previous government stance.
The focus is on using bancassurance to reach underserved areas.
- Who
- Department of Financial Services (DFS)
- What
- Directing PSBs to focus on insurance distribution.
- When
- Not explicitly stated.
- Where
- Tier-2 and Tier-3 cities
- Why
- To expand insurance reach and promote financial inclusion.
Previous Govt. Stance
Banks' New Directive
Banking Focus
Previous Govt. Stance
Prioritize core banking functions such as deposits and lending.
Banks' New Directive
Simultaneously distribute insurance products.
- Key Focus
- Insurance distribution
- Target Banks
- Public Sector Banks (PSBs)
- Geographical Focus
- Tier-2 and Tier-3 cities
- Government Goal
- Insurance for All by 2027
- Partnership Type
- Bancassurance
