Non Banking Companies , How much they Are true To the Licence
According to RBI we have 34,754 companies who are doing banking , but only 12,375 companies have the license of NBFC . This means that even the Central Bank of the country is aware of the ground reality ,that unauthorised companies are involve in unauthorised activity ,meaning they are accepting deposit from public . Out of these companies 87 are being investigated for financial irregularity . This fact is also known to central government . It means that 22,000 companies are not legally entitled to accept the deposit from common man , even then they are doing so .
But most surprising is that RBI has issued a circular ,which says that in cases involving Rs 25 lakhs are exempted from reporting it to RBI authorities . Also it says if the company is involved in a financial irregularity , and the Police FIR is not adjudicated , within three months then the company need not report it . Meaning the concern NBFC has the opportunity to manipulate the legal process to its advantage .because police is not very much at ease in such financial cases involving much paperwork. Normally cases of embezzlement special cell is created for cooperative banks and societies . But in case of NBFC such facility is unavailable .
Though neither government nor RBI has a perfect data ,as to what amount is involved in ""Such" matters .Many unauthorised companies accept deposit from public ,with a promise that their amount will be doubled within three years . But after receiving the amount they VANISH in thin air . IN Indore and Khandwa , Burhanpur, Jabalpur many cases have been reported , where companies have not left any trace of their whereabouts.The common man who loses their money have no respite . Neither he gets his money nor the police is able to find the "culprits' .
Though the RBI has a list on its website of companies who are authorised to accept the deposit from public . What is required that police should get the list, and on receiving the complaint , they should see to it whether the company is entitled to do so or not . Only if this exercise is done , then hundreds of people may be saved from losing their savings.
But most surprising is that RBI has issued a circular ,which says that in cases involving Rs 25 lakhs are exempted from reporting it to RBI authorities . Also it says if the company is involved in a financial irregularity , and the Police FIR is not adjudicated , within three months then the company need not report it . Meaning the concern NBFC has the opportunity to manipulate the legal process to its advantage .because police is not very much at ease in such financial cases involving much paperwork. Normally cases of embezzlement special cell is created for cooperative banks and societies . But in case of NBFC such facility is unavailable .
Though neither government nor RBI has a perfect data ,as to what amount is involved in ""Such" matters .Many unauthorised companies accept deposit from public ,with a promise that their amount will be doubled within three years . But after receiving the amount they VANISH in thin air . IN Indore and Khandwa , Burhanpur, Jabalpur many cases have been reported , where companies have not left any trace of their whereabouts.The common man who loses their money have no respite . Neither he gets his money nor the police is able to find the "culprits' .
Though the RBI has a list on its website of companies who are authorised to accept the deposit from public . What is required that police should get the list, and on receiving the complaint , they should see to it whether the company is entitled to do so or not . Only if this exercise is done , then hundreds of people may be saved from losing their savings.
