New Delhi, Dec 17 (PTI) The value of the Indian Rupee (INR) is market-determined, with no target or specific level or band, Parliament was informed on Tuesday.

"Various domestic and global factors influence the exchange rate of INR, such as the movement of the Dollar Index, trend in capital flows, level of interest rates, movement in crude prices, current account deficit etc," Minister of State for Finance Pankaj Chaudhary said in a written reply in Rajya Sabha.

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The RBI monitors key developments across the globe which may have an impact on USD-INR exchange rate, he said.

Among others, monetary policy actions of major central banks, major economic data releases across the globe and their impact, OPEC+ meeting decisions, tracking, and analysing geopolitical events, daily movements in G-10 and EME currencies etc, are key in determining the exchange rate, he said.

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RBI regulates the foreign exchange market with a view to ensuring its orderly functioning and development and intervenes only to curb undue volatility in the INR.

Replying to another question, Chaudhary said insurance companies including LIC follow various principles in designing their products which include regulatory prescriptions, actuarial analysis and accordingly decide on rate of premium, rate of bonus and commission payable within prescribed limits.

Insurance companies being regulated commercial entities have flexibility to decide on all these matters, in alignment with regulatory guidelines issued by IRDAI and their board-approved policy on commission structure, he said.

Insurance sector regulator, IRDAI has issued Expenses of Management Regulations, 2024 dated January 22, 2024 and Master Circular dated May 15, 2024 stipulating specified limits for commission payable on life insurance products.

Further, he said, IRDAI has issued IRDAI (Insurance Products) Regulations, 2024 dated March 20, 2024 and Master Circular on Life Insurance Products dated June 12, 2024 which have introduced Special Surrender Value to be paid in case a policy is cancelled after 1 year.

Accordingly, in compliance, LIC has modified the commission structure for agents in such a way that first year commissions have been reduced slightly whereas commission for subsequent year, from 4th to 6th years, have been increased, he said.

To comply with revised regulatory norms, premium of some products has been slightly increased by LIC to ensure that the product is viable in competitive environment.

The level of bonus may vary from time to time depending upon various financial outcomes including claim experience and interest rates.

However, he said, LIC has informed that the bonus rates for existing products have remained same for last 5 years.

Product portfolio of LIC is reviewed regularly, he said, adding, new products are introduced as per the market needs and customer preferences to enhance value of all the stakeholders.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)