RBI cautions against two firms claiming to be NBFCs

The Reserve Bank of India (RBI) has cautioned general public from depositing money with two firms claiming to be Non-Banking Financial Company (NBFC) despite not receiving requisite Certificate of Registration (CoR), said deputy general manager, RBI, Ahmedabad, in a public notice issued here. The public notice was issued by deputy general manager, RBI, Ahmedabad, on August 2.

In its notice, RBI has said, “It has come to the notice of the Reserve Bank of India (RBI) that “M/s. Jagritifinance.com” and “M/s. Singhaniafin.com”, are inviting deposits from the public through their websites “www.jagritifinance.com” and “www.singhaniafin.com” respectively, claiming to be registered with RBI.”

The banking regulator further clarified that it had not issued certificate of registration to both the entities to function as NBFCs.

“The members of the public are informed that the RBI has not issued Certificate of Registration (CoR) either to “M/s. Jagritifinance.com” or “M/s. Singhaniafin.com” to function as Non-Banking Financial Company (NBFC) , to grant loans or accept deposits from the public or for doing any business of a financial institution,” the notice further said.

Cautioning the public from making deposits in these entities at their own 'risk', the RBI said, "Members of the public are hereby cautioned that deposit of money or any dealing with the said entities would be at their own risk. Acceptance of deposits by an unincorporated body as mentioned in Section 45-S of RBI Act, is prohibited and is punishable with imprisonment under the provision of RBI Act."