Page 49 - The Insurance Times January 2022

Circular

IRDAI Circular

Maintenance of Current Accounts in 4. The insurance intermediaries shall review annually the
multiple banks by Insurance Intermediaries need for having multiple current accounts and
rationalization, if any, as may be required.
including entities sponsored by them
5. This circular is issued in exercise of the powers
IRDAI/INT/CIR/MISC/318/12/2021 conferred under Section 14(2)(e) of the IRDA Act, 1999.

December 29, 2021
S N Rajeswari
Member (Distribution)
1. It has been observed that the insurance intermediaries
maintain multiple current accounts with banks at Inviting applications/Expression of
different operational levels, i.e., Branch offices,
Corporate office, etc., for regulatory and other purposes. Interest for empanelment of Professional
(s) for translation and typing of various
2. RBI, vide its circular ref: RBI/2020-21/20 DOR.No.BP.BC/
7/21.04.048/2020-21 dt. 6th Aug. 2020 on “Opening of documents from English to Hindi and vice-
Current Accounts by Banks – Need for Discipline”, has versa
instructed banks not to open current accounts for
customers who have availed credit facilities in the form RDAI/ADMN/NOT/MISC/306/12/2021
of cash credit (CC) / overdraft (OD) from the banking 10th December, 2021
system. On a review, vide its circular ref: RBI/2020-21/
79 DOR.No.BP.BC.30/21.04.048/2020-21 dt. 14th 1. IRDAI invites applications for empanelment of
December 2020, RBI has permitted banks to open professional(s) for translation of various documents of
specific accounts which are stipulated under various general, legal & technical nature from English to Hindi
statutes and instructions of other regulators/ regulatory and vice-versa. The Individuals/Firms and Retired
departments, without any restrictions placed in terms Officials (from Government Departments, PSUs,
of the above mentioned circular. Regulatory Bodies) possessing the qualifications and
experience as mentioned in the para 4 may apply.
3. Based on the requests received by the Authority, to
avoid hardships, if any, faced by the insurance 2. The professionals should be competent and proficient
intermediaries in maintaining current accounts with in both the languages i.e. Hindi and English and should
banks, it is clarified that the respective insurance be well conversant with the legal and technical
intermediaries including entities sponsored by them terminology being used in the domain of Insurance.
may maintain current accounts in appropriate number 3. Nature of Translation work from Hindi to English and
of banks for the purpose of meeting regulatory vice-versa
requirements, reinsurance business, etc. that are in line (i) Translation of various general, legal and technical
with conditions given in regulations, guidelines, circulars references, documents, manuals, other publications
issued by the Authority. etc.

The Insurance Times, January 2022 49