RBI is working with the government to bring about changes in the law to regulate the entities who are illegally accepting deposits from the public, RBI deputy governor, R Gandhi, said.
“There are a number of companies that are registered as finance companies but are not regulated by the Reserve Bank. There are incorporated companies and unincorporated entities who are illegally accepting deposits. The laws these days are inadequate to deal with these issues. In order to correct these and initiate actions against these issues we need to bring suitable amendments in the statutory provisions. Reserve bank is working with the government for such improvements in the law,” Mr Gandhi said during a conference on “Governance & Development: Views from G20 Countries”.
Mr Gandhi said the challenges related to NBFCs in India are about customer protection.