IRDAI Issues Guidelines for Amalgamated Regional Rural Banks on Corporate Agency Continuity and Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) has released a detailed circular addressing the regulatory requirements and compliance expectations for Regional Rural Banks (RRBs) that have undergone amalgamation effective 1st May 2025, as per Gazette Notification No. CG-DL-E-07042025-262329, dated 5th April 2025.

This advisory outlines the next steps these merged entities must take to ensure continuity in their role as corporate agents and to maintain regulatory harmony during the transition.

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Scope of the Circular

This circular applies to all amalgamated Regional Rural Banks. The terms Transferor RRBs and Transferee RRBs carry the same meanings defined in the official Gazette Notification referenced above.

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1. Surrender and Retention of Certificate of Registration (COR)

After amalgamation, the Transferee RRB is allowed to retain one Certificate of Registration to continue acting as a Corporate Agent. However, it must apply for name and address updates as per IRDAI (Registration of Corporate Agents) Regulations, 2015.

All other CORs held by the Transferor RRBs must be formally surrendered through a written request. Additionally, the Transferee RRB must:

• Submit an undertaking confirming continued servicing of policyholders.

• Establish arrangements with previous insurers of the merged entities.

• Address all regulatory liabilities of the Transferor RRBs (e.g., GST dues, pending returns) within 90 days from the amalgamation date.

If a mutual agreement between the Transferee RRB and an insurer cannot be reached, the insurer remains responsible for policyholder servicing until policy expiry.

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2. Temporary Continuation of Existing Insurance Partnerships

Despite the general limit of partnerships with 27 insurers under Regulation 3, the Transferee RRBs may temporarily maintain existing agreements with more insurers for up to 12 months post-amalgamation.

• These arrangements must be amended via addendums to reflect the Transferee RRB's name.

• This allowance does not permit new insurer tie-ups during the transition window.

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3. Revised Board Policy Submission

Transferee RRBs must submit a Board-approved insurance policy within 60 days of amalgamation. This policy should:

• Define the bank’s open architecture approach.

• Detail how insurance products will be marketed and serviced.

This requirement is under Regulation 20(1) of the IRDAI (Registration of Corporate Agents) Regulations, 2015.

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4. Transfer of Specified Persons (SPs)

• Transferee RRBs must email the revised list of SPs to: corp.agent@irdai.gov.in.

• No fee is required for reissuing SP certificates.

• One Principal Officer (PO) from the Transferor RRBs may retain their PO certificate. All other PO certificates will be automatically cancelled.

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5. Renewal Commissions

Renewal commissions under previous life insurance arrangements of the Transferor RRBs will be payable to the Transferee RRB only after appropriate policy servicing measures are in place.

The Authority reserves the right to request additional documents post-amalgamation as necessary.

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6. Legal Authority

These guidelines are issued under the authority of Section 14(2)(e) of the IRDA Act, 1999.

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🔗 Official Notification:
Click here to view the full circular on IRDAI’s website

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Disclaimer:
This blog is auto-generated for general informational purposes only. For specific regulatory guidance and compliance procedures, please refer to the official IRDAI circular or consult with your legal and compliance teams or your advisor.