[Resolved]  Sunmarg Welfare Society (Suraha Micro Finance) — Cheat Fund, Not Complying Sec 45 (I)a, RBI 1934

Address: Cooch Behar, West Bengal

Banking regulator, Reserve Bank of India has cautioned customers against unregistered non banking finance companies (NBFCs) and sec 25 companies dealing with money marketing which allure customers by offering high returns on deposits and claim to have RBI registration.

The central bank has also said that all complaints of this nature should be addressed to the Economic Offences Wing of the state governments concerned.

"It was reported that some individuals, firms, unincorporated association of individuals (unincorporated bodies) or marketing companies and companies engaged in money circulation schemes have been collecting money from the public by making tall promises of high returns, either through issue of advertisements or by sale of products," the RBI said.

"Money circulation schemes are banned under the Prize Chit and Money Circulation Schemes (Banning) Act 1978 and the respective state governments have the power to take action against the persons involved in such schemes," RBI said.

The apex bank has also generated a list of 300 registered NBFCs which are permitted to accept deposits.

"No NBFC outside of this list can accept deposits from public. Doing so is clearly fraudulent and has to be investigated by the law enforcement agencies in the normal course," the RBI said.

Punitive action like cancellation of Certificate
of Registration (CoR), prohibition from
acceptance of deposits and alienation of assets,
filing criminal complaints and winding up
petitions in extreme cases, appointment of the
RBI observers in certain cases, etc.
Co-ordination with State Governments to curb
unauthorised and fraudulent activities, training
programmes for personnel of NBFCs, State Governments and Police officials.