Rajya Sabha on Thursday, March 18,  passed the Insurance (Amendment) Bill, 2021 that seeks to raise the FDI in insurance sector to 74 per cent from the current 49 per cent, despite opposition push to refer the Bill to a standing committee. “The FDI policy is brought in only to supplement domestic capital. This will only supplement what is available in the country because what is now available is not sufficient,” Finance Minister Nirmala Sitharaman told the House. Responding to the opposition’s criticism against the amendment, Sitharaman said the law has “enough safeguards” built in. “Under the new structure, the majority of directors on the board and key management persons would have to be resident Indians, which will make them accountable under the Indian law. At least half of directors are to be independent directors which also ensures accountability,” she said.

On the criticism that the move might dilute reservation in state insurance players, the minister said the Narendra Modi government is committed to the protection of the Scheduled Castes, Scheduled Tribes and Backward Classes.

“All the places connected with Dr BR Ambedkar have been protected by the Modi government. This shows that the government is committed to the SC community and that the reservation policy will not be changed,” she said.

During the discussion earlier, Leader of Opposition Mallikarjun Kharge said the Bill will put people in trouble.