Karnataka - Shimoga   

Call for law to check finance units

Special Correspondent

Govt. urged to give more powers to Reserve Bank of India

SHIMOGA: The President of the State Depositors' Association, Anantharamaiah, said here on Thursday that the Government should give special powers to the Reserve Bank of India to frame special Act to deal with the nefarious activities of the private financial institutions which cheat the public by offering higher rate of interest on their deposits.

Addressing a press conference, he said that going by the manner in which these institutions are duping people, it appears that they were neither afraid of the Government nor the courts.

Mr. Anantharamaiah said the fact that private financial institutions are allowed to collect shares from the public has led to their failure in returning the money collected from the public as most of the times they fail to earn profits because of the mismanagement.

He suggested that the Government frame laws to prevent private financial institutions from engaging themselves in the stock market business.

He welcomed the assurance given by the Cooperation Minister, R.V. Deshpande, that the Government would give insurance coverage to the every deposit exceeding Rs. 50,000 kept in the private financial institutions.

He suggested that this facility be extended to the private companies too.

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