IRDA slaps fine of Rs 5 lakh on Punjab & Sind Bank

The Insurance Regulatory and Development Authority (IRDA) has imposed a fine of Rs 5 lakh on Punjab & Sind Bank, a corporate agent of Aviva Life Insurance, for receiving higher commission. The regulator has asked the bank to pay the penalty within 15 days.

The PSU bank has received an additional commission of 5.19 crore in the form of infrastructure support, advertisement and publicity expenses during the FY 2011-12. The regulator observed that the received payment was over and above the permitted agency commission during 2011-12 which is in violation of the Insurance Act.

Punjab & Sind Bank, which is a GoI undertaking, is one of the six banks nationalized by the GoI in April 1980, and today, is one of 19 nationalized banks in India. In over 100 years of operation, the Bank has significantly grown its branch network with a presence predominantly in north India.