Irdai proposes big changes to insurance commissions; companies, agents may feel the pinch
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a significant overhaul of the commission payment structure for insurance distributors. This new framework aims to establish limits based on the type of product, distribution channel, and policy size. The regulator also suggested reducing overall expense limits for life and general insurers within specific timeframes. This move is expected to impact the earnings of agents and companies heavily reliant on commission income, with current commission structures varying widely across health, life, and general insurance products.
Why it matters
This isn't just about tweaking numbers; it's a fundamental shift. For banks and NBFCs, which often act as corporate agents for insurers, a reduction in commissions directly impacts their non-interest income, potentially requiring them to recalibrate revenue strategies and distribution models. It signals a regulatory push towards making insurance more affordable and transparent for consumers, but at a cost to established business economics.
The Economic Times · Fri, 25 September 2026
Read more →Banks’ biggest risks may now sit inside their tech stack: RBI Deputy Governor Rohit Jain
RBI Deputy Governor Rohit Jain stated that technology has evolved beyond being a mere enabler for banks and is now becoming their core 'risk architecture.' He highlighted that technological resilience is as crucial as financial resilience. Jain urged banks to treat technology risk as a first-order enterprise risk, advocating for stronger governance, enhanced cybersecurity measures, better oversight of third-party vendors, and robust controls over artificial intelligence (AI) implementations. This emphasizes the central bank's growing focus on the operational and systemic risks stemming from increasingly complex banking technology.
Why it matters
The RBI is clearly signaling a need for banks to embed technology risk management at the highest levels of governance, not as an IT department problem. This implies increased compliance requirements, investment in tech infrastructure, and heightened scrutiny on areas like outsourcing and AI integration. Banks will need to demonstrate that their digital transformation is matched by equally strong risk frameworks.
The Economic Times · Fri, 25 September 2026
Read more →Reliance to raise Rs 10,000 crore next week as companies rush to tap surplus bank liquidity
Reliance Industries Limited is preparing to raise ₹10,000 crore next week through a ten-year maturity bond. This move is part of a broader trend where other major corporations, including Adani Airport Holdings, are also seeking to raise significant funds in the market. The increasing volume of companies tapping debt markets signals a surplus of liquidity within the banking system. This activity is occurring just ahead of the Reserve Bank of India's upcoming monetary policy decision in early October, suggesting companies are keen to lock in funding while conditions are favourable.
Why it matters
A flush of corporate bond issuances indicates that banks have ample funds to lend, and corporations are taking advantage of potentially attractive borrowing costs. For banks, this means deploying their excess liquidity into corporate loans and investments, which can be positive for their balance sheets. However, if this liquidity is largely short-term, it could create asset-liability management challenges for banks in the future, particularly if credit demand continues to surge.
The Economic Times · Fri, 25 September 2026
Read more →Stocks in news: Waaree Energies, PB Fintech, Lemon Tree Hotels and Dr Lal PathLabs
Indian equity markets experienced significant declines, with the NSE Nifty 50 index dropping by over 380 points. PB Fintech, parent company of Policybazaar, saw a sharp 36% plunge following regulatory changes impacting insurance commissions. Meanwhile, other corporate actions were in focus: Waaree Energies expanded into specialty gases for semiconductor manufacturers, and Dr Lal PathLabs approved the acquisition of a majority stake in SN Genelab Private Ltd. Several other companies are also raising funds.
Why it matters
The market's sharp reaction to the IRDAI's proposed changes, particularly the steep fall in PB Fintech, underscores regulatory risk as a significant factor in investor sentiment. For banks and NBFCs with listed equities or holdings in similar financial services firms, this highlights the potential for rapid valuation shifts. It also suggests that a broader market correction is underway, influenced by both sector-specific regulatory shifts and global macroeconomic concerns.
The Economic Times · Fri, 25 September 2026
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