Explanation:

The Insurance Regulatory and Development Authority of India Member Nilesh Sathe announced that the decision will not be binding on banks who are free to take their call.

What is the tie-up between Bank and Insurance company called as?

The bank insurance model (BIM), also sometimes known as bancassurance, is the partnership or relationship between a bank and an insurance company.

In this model, the insurance company uses the bank sales channel to sell insurance products, an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.