NEWS & ADVICE : PERSONAL LOAN
IRDA penalizes Rs 50 lakh fine on SKS Microfinance
By Vaibhav Aggarwal
Feb 21, 2013
Print    Email    RSS   

The regulatory body, the Insurance Regulatory and Development Authority (IRDA) has slammed a Rs 50-lakh penalty on SKS Microfinance Ltd. This is the highest ever penalty imposed so far.

The company was penalized for making unauthorized changes in the benefits of policies of its clients while acting as a group policyholder or administrator.

SKS Microfinance had recovered advances extended towards funeral cost of the nominee of the deceased member which was then recovered later illegally from the claim amount paid by the insurer.

"The MFI has (also) levied a charge higher than the premium in violation of rules," IRDA Chairman, Mr. J. Hari Narayan said.

SKS Microfinance had also generated ‘substantial' amount of income under group insurance administrative charges by levying higher charges than usual, IRDA said.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
An analysis of alternatives to personal loans
Guidelines to apply for NRI Personal Loans
This is how a bank lends money
Credit profile and its effect on loan...
An Insight into Lending Rate Changes


Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan
ho many month balance in My Personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive