RBI cancelling licences of three NBFCs and six NBFCs surrendering their licences
Bureau,Odishabarta
DELHI:RBI cancelling licences of three NBFCs and six NBFCs surrendering their licences – Concept of NBFCs needs to be abolished altogether.
It refers to Reserve Bank of India (RBI) cancelling licences of three Non-Banking-Financial-Companies NBFCs and six other NBFCs surrendering their licences at their own. It is beyond understanding why at all RBI is continuing with concept of NBFCs which have no role other than being a mid-body in business of lending thus unnecessarily adding to interest-rate as profit-margin for NBFCs that too without any ceiling or limit on any such profiteering in lending business. Some NBFCs are even said to have been earning cent-percent profit on lending business by having interest rates of 25-percent or even more.
It is even more saddening that many of NBFCs are financed by public-sector banks for such undue profiteering. At least there must be a total ban on public-sector banks financing NBFCs. Furthermore NBFCs adopt illegal and torturing processes for recovery of loans from defaulters human-rights to tally unchecked by RBI where some senior RBI officers patronize NBFCs by rejecting concrete suggestions to effectively check malpractices in recovery-process. All legal notices to loan-takers must be allowed only through Registered or Speed Post because NBFCs manage private couriers to show service of notice without actually delivering the same. NBFCs file recovery-suits in cities other than the one where loan is given even though NBFC has its office in the city where loan is given just unethical harassment for recovery. Hiring goons as its executives or recovery-persons is a common phenomenon which at times poses as lawyers or police-persons in far-away cities threatening to come with arrest-warrants.
NBFCs should either be given exemption from deducting tax at source, or should be directed for auto-credit in bank-accounts of loan-takers TDS portion of interest-part of EMIs after the same is reflected in their Income Tax accounts rather than loan-takers required to apply for refund.
Input;Ms.Madhu
