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RBI shields and patronises wrong-doings of NBFCs

Reserve Bank of India RBI through an RTI response (copy enclosed) openly shielded wrong-doings of torturing money-lending business by Non-Banking-Finance-Companies NBFCs like an NBFC-agent rather than regulatory-authority when the central Bank provided an analytical detail on suggestions to regulate NBFCs especially in their money-recovering process from those trapped in their net through luring mobile-calls. Significantly these NBFCs dominate loan-takers through financing by public-money of public-sector banks which is also unduly justified by RBI which avoided giving data of complaints against NBFCs.

RBI justified filing of court-cases by NBFCs for recovery in cities other than of loan-takers despite NBFC-office being also in the city of loan-taker simply to unduly harass loan-taker attending courts in far-away cities. Even loan-takers in metro-cities like Delhi are dragged to far-away cities like Ahmedabad, Jaipur etc.

RBI justified formality of delivery of legal-notices by NBFCs without actual delivery in conspiracy with courier-companies denying compulsory sending legal or court notices through reliable mode of registered post. RBI justified NBFCs luring and encouraging loans through mobile-calls where such loans are even causing suicides.

RBI denied fixing any maximum-limit of interest-rate on loans by NBFCs even though funded by public-sector banks through public-money at comparatively quite low interest-rates. RBI rather should have referred the matter to National Anti Profiteering Authority in case it was in itself helpless to regulate NBFCs for money-minting at cost of funding by public-sector banks.

God alone can save the country and its people where officers of regulatory public-authorities like RBI behave like agents of regulated private players against interest of common people. Vigilance-enquiry should be initiated against RBI officers working like their agents having justified even illegal wrong-doings of NBFCs which even are contrary to Law of Contract.

 

SUBHASH CHANDRA AGRAWAL

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