THE MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMO NARAIN MEENA)
(a) : The details of Non-Banking Financial Companies (NBFCs) registered in the country as on
date is as under:-
Companies authorized to accept public deposit 312
Non-deposit taking companies 12352
Total 12664
(b) & (c) : Reserve Bank of India (RBI) has reported that there are 763 companies which have
vanished after accepting deposits from public. The data reporting system of RBI does not
generate information as asked for. However, whenever a company is identified as vanishing,
the case is referred to Economic Offences Wing of the concerned State Government. The onus is
on state police machinery to investigate the case and take legal action as deemed appropriate
including initiating penal action as per Indian Penal Code/ Criminal Procedure Code.
(d) & (e) : In order to protect the interest of depositors,the steps taken by the
Government/RBI include :
i) Directions have been issued by RBI to NBFCs under Non-Banking Financial Companies
Acceptance of Public Deposits (Reserve Bank) Directions 1998 on acceptance of deposits and
has also laid down prudential norms.
ii) RBI initiates adverse action against errant NBFCs for various defaults and contraventions
of provisions of Reserve Bank of India Act, 1934, such as issuing orders prohibiting them
from accepting further deposits, and alienation of assets. Action taken also involves filing
winding up petitions, launching criminal proceedings against such companies and their
management.
iii) The bank also files complaints with the Economic Offences Wing of State Police
Authorities to curb unauthorized acceptance of public deposits. In several cases, the Courts
have appointed provisional liquidators and have also restrained NBFCs from disposing of their
assets in any manner.
iv) Market intelligence system has been strengthened for picking early warning signals about
the health of particular NBFC and to trigger supervisory action.
v) At the instance of RBI, several State Governments have enacted legislations to protect the
interest of depositors’ in financial establishments.
vi) The close co-ordination through institutionalized framework of State Level Co-ordination
Committee (SLCC) with the State Government and other regulatory bodies has also resulted in
greater/ improved monitoring and restriction of unauthorized acceptance of deposits by NBFCs
and Unincorporated Bodies.
