Oct 17, 2019

PMC Bank Scam: Beyond the headlines, the missing links are still unanswered till date


Credit: Third party image reference

The biggest scam of 2019 in Indian banking sector has traumatized the Depositors of PMC Bank on 24th September still has many questions unanswered.
While all the concerned Govt. agencies are on their toes to unveil the whole nexus and people behind the curtains, the perpetrators had full team of fraudulent minds working on this act from many years with no sign of any misconduct and wrong doing.
The missing links in this whole episode are as follows:
  1. Neither RBI nor Central or State Governments have assured PMC Bank Depositors that every single penny of Depositors is safe and shall be released for withdrawals.
  2. It's still not clear when will the seized properties of HDIL group and its management be auctioned.
  3. Till date Board of Directors of PMC Bank are not yet questioned by any of the Government agencies.
  4. Who is responsible for the Deaths of 3 innocent Depositors of PMC Bank.
  5. The names of employees are yet to be revealed who are were assigned to work on this act of fraud appointed by Former MD Joy Thomas.
  6. Update or announcement from Ministry of Corporate Affairs is still awaited as the Co-operative Banks come under dual control RBI and Ministry of Corporate Affairs.
The sufferings of around 16 Lakhs Depositors is increasing by every second ticking as what will happen with their hard earned monies. Almost every day a new story is surfacing but still no deadline or date has been announced by Authorities which again is a matter of greater concern for PMC Bank Depositors.

The Depositors are looking at RBI and Government as the steps taken are at a rapid speed to clear the road ahead on releasing their Deposits.

Sep 5, 2019

Non Banking Financial Companies (NBFC) - India




Non Banking Financial Companies (NBFC) provide most of the banking services like loans, advances, small savings products, investment, etc. As they are not holding Banking License, the services provided by non Banking Financial Companies differ from company to company and depends on their discretion or jurisdiction.
Non Banking Financial Companies are registered under the Companies Act, 1956. NBFC’s are however, regulated by the Reserve Bank of India Act, 1934. The guidelines are detailed in Chapter III B of the RBI Act.
Types on NBFC's operating in India
·         Loan Company
·         Investment Company
·         Asset Finance Company
·         Infrastructure Debt Fund Company
·         Infrastructure Finance Company
·         NBFC – Factors
NBFC’s cannot do:  
·         They cannot accept demand deposits.
·         They can’t open savings account.
·         They are not allowed to issue cheques that          are drawn on them.
·         The deposits maintained with them are not secured by the Deposit Insurance and Credit Guarantee Corporation.
NBFCs play an important role in financial inclusion and their credit portfolio is increasing at a rate which is more than the growth percentage of Banks. As they operate through agents on a large scale they are able to provide credit support at low costs. Also, their recovery rate is quite impressive.