RBI probing over 34,000 NBFC firms for running with authorisation: govt

New Delhi: The Reserve Bank is looking intoparticulars of more than 34,000 firms allegedly runningbusinesses on lines of Non-Banking Financial Companies (NBFC)without authorisation from the banking sector regulator, thegovernment said today.

The list of these companies was shared by the Ministry ofCorporate Affairs with the RBI.

“The Ministry of Corporate Affairs sent a list of 34,754companies having enabling clauses in their memorandum ofassociation for undertaking NBFC like business, to identifycompanies which were carrying on the business in lines of NBFCwithout a license from RBI,” Minister of State for CorporateAffairs Nirmala Sitharaman informed the Rajya Sabha in awritten reply.

“RBI has commenced the process to ascertain the factsfrom all the companies which appear to have unauthorisedlyaccepted public deposits,” she added.

Responding to a query on chit fund entities, Sitharaman said that promoters of such firms were found to be taking advantage of various norms after which an inter-ministerial (IMG) was constituted with representatives from the Ministry of Finance, Ministry of Corporate affairs, RBI and Securities
and Exchange Board of India, “for better inter-agency coordination” on issues related to money pooling schemes.

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In this regard, she also said the Ministry of Corporate Affairs had taken various steps to protect small investors.

These include investor awareness programmes, enhanced disclosure norms under the new companies law and enhancing the accountability as well as independence of auditors.

PTI