Crb Charged With Violation Of Icd Norms

The Reserve Bank of India (RBI) has accused CRB Capital Markets Ltd (CRB) of violating norms governing inter-corporate deposits (ICD) and raising deposits in excess of prescribed limits.

Another factor which RBI found objectionable was the fact that the nature of business carried on by CRB, which was classified as a leasing and hire purchase company, was akin to that of a loan and investment company. In addition, RBI inspectors objected to the interest rates and incentives offered by CRB to the depositors.

These charges were advanced by RBI in a letter to CRB after the central bank decided to take the drastic step of barring the company in raising deposits.

 

CRB had raised deposits Rs 34 crore in excess of what it was permitted to.