Lok Sabha Question No. 3587 (UNSTARRED), answered on 2021-12-20
Subject: Wage Revision in Insurance Companies
Ministry: FINANCE
Asked by: Hibi Eden

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA

## UNSTARRED QUESTION NO- 3587

ANSWERED ON- 20.12.2021/ 29 AGRAHAYANA, 1943 (SAKA)

## Wage Revision in Insurance Companies

## 3587.  SHRI HIBI EDEN:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  plans  to  consider  wage  revision  proposals  of  public  sector  general insurance companies;
- (b) if so, the details thereof including the details of negotiations being conducted for the same;
- (c) whether the Government has observed rising online loan apps and related cases of individual debt burden in India; and
- (d) if  so,  the  details  thereof  including  the  manner  in  which  such  loans  are  being  regulated  by  the Government?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (Dr. BHAGWAT KARAD)

(a) and (b): Wages in public sector general insurance companies (PSGICs) are settled periodically on the basis of negotiations between PSGICs and the unions of workmen employees of PSGICs, in terms of  the  provisions  of  section  19  of  the  Industrial  Disputes  Act,  1947.  In  case  of  non-workmen employees,  wage  revision  is  agreed  to  between  PSGICs  and  associations  of  such  employees  after discussions among them. PSGICs negotiate/ discuss with unions/associations through the General Insurers' (Public Sector) Association of Indi a  (GIPSA). Based on such settlement/discussions, the amendments proposed by GIPSA to the schemes made by the Central Government under section 17A for  regulating  the  terms  and  conditions  of  PSGIC  employees  are  considered  by  the  Government. Government is not in receipt of any such wage settlement/revision proposal at present.

(c)  and  (d):  The  Reserve Bank of India (RBI) had constituted a working group on digital lending, including lending through online platforms and mobile apps, and the group's report is pl aced on its website(https://www.rbi.org.in/Scripts/BS\_PressReleaseDisplay.aspx?prid=52589). As per the report, there were approximately 1,100 lending apps available for Indian users on the Android platform during the period from 1.1.2021 to 28.2.2021.

Credit  related  issues  are  mostly  deregulated  by  RBI  and  banks  are  required  to  take  credit  related decisions based on their Boardapproved policies, broad regulatory guidelines and the bank's internal assessment of commercial viability of the loan. Further, given the risks associated with loans sourced over digital lending platforms, instructions were issued by RBI vide its circular dated 24.6.2020 to all Scheduled Commercial Banks (excluding Regional Rural Banks) and non-banking financial companies (NBFCs) to adhere to Fair Practices Code and Outsourcing Guidelines for loans sourced over digital lending platforms, either through their own arrangements or under an outsourcing arrangement. The list of banks and registered NBFCs is published on the official website of RBI. RBI has also advised that wherever banks and NBFCs engage a digital lending platform as their agent to source borrowers and/or recover dues, the banks/NBFC concerned should disclose the name of the digital lending platform engaged as agent on its website and also advise its agents to disclose upfront to the customer the name of the bank/NBFC with whom it is associated.