MFI Bundled Insurance Without Consent
Your MFI made insurance a mandatory condition for getting the loan — bundling a credit life or health insurance policy and charging the premium without giving you a genuine choice.
⚖️Your Rights Under RBI Regulations
Insurance must be voluntary for MFI borrowers — it cannot be a condition for loan approval.
If insurance is offered, you must have a genuine option to decline without affecting loan approval.
The insurance premium must be included in the APR calculation — if not, the disclosed rate is understated.
💰 What You Can Recover
Full refund of insurance premiums paid without genuine consent.
⏱ Response Deadline
30 days for GRO response.
📋Step-by-Step — What to Do
Write to the MFI's GRO stating that insurance was not voluntary and demanding premium refund.
File with RBI Ombudsman and also with IRDA (igms.irda.gov.in) for the insurance angle.
File with Sa-Dhan or MFIN SRO — they have member conduct standards.
🏛 Where to Escalate If Bank Doesn't Respond
RBI Integrated Ombudsman + IRDA IGMS + Sa-Dhan / MFIN
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