Punjab cautions investors investing in N.B.F.C

Chandigarh, November 4, 2014: The Punjab Government has issued advisory to the investors of the state to shun the practice of investing their hard earned money into non- registered Non Banking Finance Companies (N.B.F.C).

Disclosing this here today an official spokesperson of the Finance department said that as per the law only those Non Banking Finance Companies that have been authorised to collect money and got themselves registered from RBI. He said that N.B.F.C could not offer more than 12.5% interest on the public deposits. Similarly the N.B.F.C could not accept the deposit for a period which is lesser than 12 months and more than 60 months. The N.B.F.Cs could also not extend freebies and other lucrative offers and gifs.

He said that the list of the N.B.F.C registered with RBI is available on www.nbfclist.org.in. He further said that it has been noticed that most of the frivolous N.B.F.C amass public money by playing fraudulent tactics. He said that the advisory issued by the Punjab Government is aimed at generating awareness among the masses.

He said that the state government earlier also organised state level sensitization workshop in which senior level govt. functionaries in the rank of Additional Deputy Commissioner (Development), RBI and SEBI officials had participated. He said that the ADCs (Development) who are also holding the charge of joint director, institutional finance were sensitized to keep a close tab on the working of N.B.F.C of their respective areas.

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