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ARTICLE · 12 FEBRUARY 2025

Policy And Tax Reforms Impacting The Financial Services Sector

Ernst & Young
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The FY25-26 Union Budget presented by the Indian Finance Minister continues the Government's efforts to catalyse economic expansion, provide inclusive development

IndiaFinance and Banking
Keyur Shah
Keyur Shah
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The FY25-26 Union Budget presented by the Indian Finance Minister continues the Government's efforts to catalyse economic expansion, provide inclusive development, stimulate private sector participation, boost consumer confidence, and augment the purchasing capacity of India's burgeoning middle class.

The following are the key changes/ initiatives proposed to the Financial sector:

  • FDI limits for insurance sector to be raised from 74% to 100% subject to companies investing entire premium in India; current FDI guardrails and conditionalities to be reviewed and simplified
  • KYC process to be simplified; revamped Central KYC Registry to be rolled out in 2025
  • Forum for regulatory co-ordination and development of pension products to be instituted

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