Bill passed in Har Assembly to protect depositors' interests

Haryana Assembly today passed a Bill to improve regulatory coordination and protect the interests of depositors.
Presently, there are 88 registered Non-Banking Financial Corporations (NBFCs) in the state.
On the concluding day of its brief monsoon session, the Assembly passed the Haryana Protection of Interest of Depositors In Financial Establishments Bill, 2013.
The Bill envisages to ensure that NBFCs function on healthy lines and in consonance with the monetary policy framework so that their functioning does not lead to systemic aberrations.
It also envisages that NBFCs keep pace with developments in this sector in pursuance to guidelines issued by the RBI and the state government is empowered to prosecute these companies and attach their properties in case people are duped.

Other salient features of the Bill include, in case of default by any financial establishment, every person including the promoter, partner, director, manager or any other person or an employee responsible for the management, will be punished with imprisonment for a term which may extend upto seven years with a fine of upto Rs two lakh.
Such financial establishments will also be liable for a fine which shall not be less than Rs five lakh.