Compounding its woes, SKS Microfinance has come under the Insurance Regulatory and Development Authority’s (Irda’s) scanner for violating norms in selling insurance policies to its borrowers.
Sources said the country’s only listed microfinance company was under the scanner of Irda for charging higher commission on sale of insurance policies. They said SKS had collected commissions higher than the 10 per cent permitted for an agent while selling policies.
There have also been reports that SKS had received cheques for death claims on its name. Under the normal practice, the cheque is issued in the beneficiary’s name. When contacted, Irda Chairman J Hari Narayan said, “We are still examining the records (of SKS). Investigation is going on.”
A spokesperson of SKS said, “People from Irda came to examine records a month ago. But they have not issued any notice thereafter.”
For over a month now, SKS Microfinance has been in a controversy for sacking of its CEO Suresh Gurumani. Adding to its woes, the Andhra Pradesh government issued an Ordinance on October 15 for controlling the microfinance companies.
