A notice was sent to SKS Microfinance by the IRDA for ‘collecting’ higher commissions than permitted while acting as an agent and ‘not depositing’ the money with the insurer as mandated.The company has also been ‘found’ to be receiving cheques of death claims on its name which is illegal.
Under Section 102 of the Insurance Act, the ‘violations’ once established would entail a penalty of Rs 5 lakh a policy and could run into several crores of rupees given the large customer base of the Hyderabad-based company.
Read the rest on Hindu Businessline
2010: A year that was for MFIs in India
Year 2010 saw the fortunes of the Rs. 25,000-crore microfinance industry oscillate between capital market glory and regulatory gloom and the sunrise sector is now looking forward to a New Year devoid of usurious interest rate controversies and credit crunches.
Read more at: NDTV