FAKE FINANCIAL INSTITUTIONS: RBI And Punjab Govt To Adopt Coordinated Approach In Weeding Out

Chandigarh, May 20, 2016: A special one-day conference was organised for the IAS and IPS officers especially posted in districts of Punjab to minutely understand the intricacies of Financial Regulatory Framework and corresponding legal environment and to adopt a coordinated approach in disposing off public grievances particularly in matter of unauthorised collection of public funds.
A one day conference on Financial Regulatory Framework and Legal Environment: Need for Coordinated Approach, was organised by Reserve Bank of India here today. Chief Secretary Punjab, Mr. Sarvesh Kaushal while inaugurating the conference said that the state government was taking stringent measures to check the fake financial companies and economic offences can not go unpunished. He said that understanding the severity of financial frauds, the state government has already launched a massive campaign to weed out fraudulent financial companies from the state. He has asked the galaxy of IAS and IPS officers attending the conference to safeguard the interests of the investors/ depositors in their respective areas of operations. He also asked them to evolve such a mechanism in coordination with the Reserve Bank of India (RBI) and Security Exchange Bureau of India (SEBI) to flush out deceitful financial companies from across the state.
The Chief Secretary appreciated the endeavor of the Reserve Bank of India for taking first of its kind initiative on a larger platform to generate awareness amongst masses and sensitize the officers to take appropriate action against the erring finance companies out to cheat innocent people in the state.
In his welcome address Regional Director RBI Mr. Nirmal Chand said that Reserve Bank of India was taking cognizance of the reported instances of cheating and frauds on the part of the fake finance institutions, unauthorized and high interest charging money lenders not adhering to the guidelines of the RBI. He said that RBI has already initiated required action against them. He said that besides this RBI was also taking steps to enhance flow of credit towards priority sector lending especially agriculture, Micro and Small Entrepreneurs, Weaker Sections of the society, various other schemes of Banks, NABARD etc. He also said that RBI was making concerted efforts to make Financial Literacy Centres (FLCs) effective enough to attract the people to the banking fold which was safer.
Prominent among others who attended the conference included Additional Chief Secretary Home Mr. Jagpal Singh Sandhu, Secretary Personnel, Mr. K.A.P.Sinha, General Manager RBI, Mumbai, Mr. G.Jagan Mohan, Joint Legal Advisor Central Office Mumbai, , Mr. Joseph Raj , DGM North Zone SEBI , Md. Atif Alvi, General Manager PNB SLBC Convener Bank Dr. P.M.Padha besides senior IAS and IPS officers of Punjab.