Punjab Government on Tuesday issued an advisory to the investors of the State to shun the practice of investing their hard- earned money into non-registered Non-Banking Finance Companies (NBFCs).
“As per law only those NBFCs have been authorised to collect money that has got themselves registered from the Reserve Bank of India (RBI),” said an official spokesperson of the Finance department.He said that NBFC could not offer more than 12.5 per cent interest on public deposits. Similarly, the NBFC could not accept deposit for a period which is lesser than 12 months and more than 60 months. NBFCs could also not extend freebies and other lucrative offers and gifts.
He said the list of NBFC registered with RBI is available on www.nbfclist.org.in.It has been noticed that most of the frivolous NBFC amass public money by playing fraudulent tactics, said the spokesperson, adding that the advisory issued by the Punjab Government is aimed at generating awareness among the masses.He said that the State Government earlier also organised State-level sensitisation workshop in which senior level Government functionaries in the rank of Additional Deputy Commissioner (Development), RBI and SEBI officials had participated.