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Modi Government Unveils Ambitious Legislative Agenda for First 100 Days

April 16, 2024

Modi Government Unveils Ambitious Legislative Agenda for First 100 Days

The Narendra Modi government, eyeing re-election, has revealed an ambitious legislative plan for its initial 100 days in office. A key proposal is the establishment of a National Financial Information Registry (NFIR) through a new bill to be introduced in Parliament. The NFIR aims to provide lending institutions with detailed data to speed up credit processes and lower costs.

Prime Minister Modi has directed ministers to collaborate with secretaries and officials to shape the government’s agenda for the first 100 days. Under the NFIR framework, banks could request consent from individuals or businesses to access information on business metrics like turnover, electricity usage, and GST payments. Reports suggest that failure to consent could lead banks to demand collateral or offer loans at higher interest rates.

To boost microinsurance, essential for financial inclusion, the government plans to reduce the minimum capital requirement for such players below the current Rs 100 crore mandate. Amendments to the Insurance Act and the IRDAI Act are in progress after discussions with stakeholders.

Moreover, the government aims to refine insolvency laws by amending the Insolvency and Bankruptcy Code (IBC). These amendments will introduce norms for cross-border and group insolvency, remove interim moratoriums for personal guarantor assets, and introduce project insolvency under a real estate and creditor-led resolution plan (CLRP).

Significant reforms are also expected in the insurance sector, including the introduction of composite insurance licenses, differential minimum capital requirements, and facilitation of captive insurance.

Currently, the Insurance Act of 1938 and IRDAI regulations prevent insurers from offering life, general, and health insurance under a single entity. Allowing composite licensing could streamline operations, cut costs, and expand customer choices.

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