Fed up with the unchecked cases of financial crimes and frauds keep coming the apex monetary regulator Reserve Bank of India (RBI) is set to launch a website to deal with the issue. The site would share entire list the financial companies registered with different regulators and permitted to conduct business in public besides being a forum for complaint registration.
Informing about the much sough after move, RBI Regional Director for Bihar-Jharkhand region MK Verma said the website would come into force within two month time.
“We are in the process of developing a centralised mechanism under State level Coordination Committee (SlCC) for the help of the common depositors with non-banking firms. The website would provide easy access about non-banking finance companies (NBFCs) for regulators, law enforcement agencies and customers on real time basis. Common public can also lodge complaint there and get whole list of genuine companies in operation,” said Verma briefing the media after a meeting of SlCC with Chief Secretary Rajbala Verma and host of other agencies on Thursday.
The officer admitted that large number of financial frauds through firms eloping with public money in the name of lusty interest is coming into light which made the mechanism necessary. There are just 264 non-banking finance companies (NBFCs) registered with the State Government under the ‘Jharkhand Protection of Interest of Depositors (in Financial Establishments Act), 2011or PID Act.
“In the SlCC meeting, it has been instructed that all DCs would share the list of the resisted companies and initiate sue motto against those who are unregistered. Chit fund companies are also needed to be registered with ‘Registrar of Chits’ and take prior permission before operating,” added Verma who also admitted that NBFCs in order to duck the statuary provisions are switching to cooperative societies and the SlCC proposed ways to regulate those as well. 20 chit fund companies are listed with RBI and none of those is permitted to accept deposits.
The SlCC also stressed on expediting installation of special courts after due approval of the High Court. “There is provision for special courts under the PID Act to deal with financial fraud cases in speedy manner. The process for that would be initiated and the Chief Secretary directed law Department to look into it,” said he. Jhalsa would train the district level officials, policemen and other relevant field officers of CID etc to inform about regulations.
The RBI on its part also pressed the State Government to relax the Moneylenders Act passed for NBFCs registered with it. “The Act prevents anyone offering interest more than 12 per cent for secure and 15 per cent for unsecured loans. But the legitimate NBFCs like Bandhan Bank and others take money from banks and lend. It is not possible to follow the provisions of the Moneylenders Act and we have requested for exemption,” said Verma.
Representatives of SEBI, Registrar of Companies, National Housing Bank, CID, Police and top officials of Finance Department, Cooperatives were present in the meeting.