SKS Microfinance under Irda scanner
Sources said the country's only listed micro finance company is under the scanner of the insurance regulator for charging higher commission on sale of insurance policies.
PTI
- Nov 26, 2010,
- Updated Nov 26, 2010 4:19 PM IST
Compounding its woes, SKS Microfinance has now come under Insurance Regulatory and Development Authority's (Irda) scanner for violating norms in selling insurance policies to its borrowers.Sources said the country's only listed micro finance company is under the scanner of the insurance regulator 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 the company had received cheques for death claims on its name. Under the normal practice, the cheque is issued in 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: "They (Irda) came to examine records a month ago. But they have not issued any notice thereafter."For over a month now, SKS Microfinance is embroiled in a controversy for sacking of its chief executive Suresh Gurumani. Adding to its woes, the Andhra Pradesh government issued an Ordinance on October 15 for conrolling the micro finance companies.
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Compounding its woes, SKS Microfinance has now come under Insurance Regulatory and Development Authority's (Irda) scanner for violating norms in selling insurance policies to its borrowers.Sources said the country's only listed micro finance company is under the scanner of the insurance regulator 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 the company had received cheques for death claims on its name. Under the normal practice, the cheque is issued in 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: "They (Irda) came to examine records a month ago. But they have not issued any notice thereafter."For over a month now, SKS Microfinance is embroiled in a controversy for sacking of its chief executive Suresh Gurumani. Adding to its woes, the Andhra Pradesh government issued an Ordinance on October 15 for conrolling the micro finance companies.
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Union Budget 2026 | Finance Minister Nirmala Sitharaman presented her record 9th Union Budget on February 1. The Budget has brought relief for travellers, students, exporters and clean-energy sectors, while tightening the screws on tax non-compliance and speculative trading.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
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