RBI to train Pb govt officials to check 'unscrupulous' NBFCs

The Reserve Bank will train Punjab government officials to check activities of "unscrupulous" NBFCs operating in the state.
RBI will sign a Memorandum of Understanding with Mahatma Gandhi State Institute of Public Administration for training of various field officials of Punjab government to implement guidelines of RBI and Sebi in order to check penetration of "unscrupulous" Non-Banking Financial Companies (NBFCs), an official spokesman said here today.
In a meeting of State Level Coordination Committee on NBFCs, Punjab government said it has intensified its action in coordination with RBI to tighten noose around unscrupulous NBFCs which are collecting money from public with fraudulent intentions, he added.

The Committee was constituted mainly for the purpose of having a coordinated approach by all the regulating agencies to protect the interests of depositors in view of "unauthorized" entities accepting deposits from public.
It was disclosed in the meeting that RBI was minutely supervising the activities of the registered NBFCs and was cancelling the Registration Certificates of NBFCs where it finds that financial irregularities had been committed.
To safeguard the interest of citizens investing in various financial schemes, Punjab government has already finalized the 'Punjab Protection of Interests of Depositors Bill' after taking inputs from RBI, Sebi and other agencies, the spokesman said.

Punjab Principal Secretary, Finance, D P Reddy informed in the meeting that RBI was in the process of making guidelines for the state government functionaries at the field level, aimed at preventing financial frauds.

To provide better information to citizens regarding "unscrupulous" companies, RBI will share complete information about them with state authorities.
"The RBI portal will also be integrated with state government portal to provide updated information about these companies," the spokesman said.
An operating mechanism of complaints received regarding unauthorized acceptance of deposits by the companies will also be developed by the state government in consultation with RBI.

Punjab has already notified Additional Deputy Commissioner (Development) of all the districts as Joint Director, Institutional Finance and Banking.
All the ADCs have been directed to collect information about NBFCs working in their jurisdiction.
Prominent amongst others who were present in the meeting included Jagpal Singh Sandhu, Additional Chief Secretary Home, D P Reddy, Principal Secretary, Finance, Rashmi Fauzdar, Regional Director, RBI.