BANKING AFFAIRS

Detailed explanation-1: -State-owned reinsurer General Insurance Corporation of India (GIC Re) has opened its IFSC Insurance Office at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City).

Detailed explanation-2: -Clearly, international banks are spotting a strategic opportunity to serve domestic and international clients from GIFT IFSC. The Bank of America Corporation, a US-based multinational investment bank and financial services company, was among the early entrants into GIFT City, having set up a delivery centre in the SEZ.

Detailed explanation-3: -With effect from 21 March 2003, its four subsidiaries (NICL, United India Insurance, Oriental Insurance and New India Assurance) were delinked from GIC by an administrative order from the Ministry of Finance and became directly owned by the Government.

Detailed explanation-4: -GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance. As soon as GIC was formed, GOI transferred all the shares it held of the general insurance companies to GIC. Simultaneously, the nationalised undertakings were transferred to Indian insurance companies.

Detailed explanation-5: -Gujarat International Finance Tec-City (GIFT City) is a business district currently under construction on the banks of the Sabarmati river in Gujarat state, India.