New Delhi, Feb. 18: The Finance Minister, Mr. C. Subramaniam, told the Rajya Sabha to-day that the Government was awaiting the report of the expert committees to take suitable measures to control the banking operations of non-banking companies.
Mr. Subramaniam said the Government wanted to prohibit the non-banking institutions from receiving deposits from the public. It also proposed further to tighten up the measures in regard to these non-banking companies and corporations receiving deposits.
The Minister was replying to Mrs. Margaret Alva and others who expressed concern over a large number of non-banking companies receiving deposits from small depositors and then defrauding them.
Mr. Subramaniam said the Government had not accepted the recommendation of the Banking Commission for encouraging non-banking companies, in view of the nationalisation of banks. On the other hand, it wanted to have stricter control over their banking operations and had appointed a committee to suggest measures for the purpose. The committee was expected to submit its report by the end of March. He assured the House that the Government would not take a long time for reaching a decision on the report.
Replying to the criticism that the objective of the Government’s credit squeeze had been nullified by the non-banking institutions receiving deposits and using them for investment on non-priority items, Mr. Subramaniam said the Government had recently reduced the quantum of these companies to 40 per cent from the original 50 per cent.
Published – February 19, 2025 02:53 am IST