RBI asks banks to disclose bancassurance fees in balance sheet
07 Jan 2010
The Reserve Bank of India (RBI) has asked banks to disclose the amount of fees earned from bancassurance business in their balance sheets.
RBI said banks should disclose these in the 'Notes to Accounts' to their balance sheets from the year ending 31 March 2010, adding that this has been done to increase transparency in the financial statements of banks.
Bancassurance or the bank insurance model (BIM) is the term used to describe the partnership between a bank and an insurance company whereby the insurance company uses the bank sales channel to sell insurance products.
RBI said as a further step in enhancing transparency, it has suitably updated all operative instructions issued to banks till 30 June 2008 on matters relating to disclosures in the 'Notes to Accounts' to the financial statements.