Notification for implementation of Protection of Interest of Depositors in Financial Establishments (Amendment) Rules, 2015 in Jharkhand was issued on Wednesday, informed Planning-cum-Finance departments Principal Secretary Amit Khare.
“Under the regulations of this code, DCs across the State have been instructed to identify all financial institutions operating in their districts by August 10. Detailed information should be collected about these institutions by the use of prescribed forms and verified,” said Khare.
“If any of these institutions are found guilty of cheating or deviating from the promised services, its owner and stakeholder will be imprisoned for a period of ten years and fines to the tune of one lakh rupees. If a financial institution is found to be holding more than the permitted amount, then it will be fined twice the default amount,” he added.
Khare stated that this code will not only ensure that depositors’ interests are safeguarded according to Protection of Interest of Jharkhand Depositors in Financial Institution, 2011, but will also help in regulating working of financial institutions across the state.
After the implementation of this code, people wronged by a chit fund can now register their grievances with the DC as responsible authority .Any cases of irregularities by financial institutions will result in their property being attached and auctioned to cover the losses of the depositors.