Home Minister Ramesh Chennithala on Tuesday urged non-banking financial companies (NBFCs) to follow the Fair Practice Code stipulated by the Reserve Bank of India (RBI) last year. They would face action if they failed to comply with the code, he said
Addressing a press conference here, the Minister said that the police had found that none of the companies, including the big ones were following the code. If they failed to follow the code, the police would raid their premises and take action under the Kerala Prohibition of Charging Exorbitant Interest Act. Besides, the RBI would be requested to take steps to enforce its guidelines.
Mr. Chennithala said that the code required the NBFCs to fix their interests rates taking into consideration the risk profile, cost of funds and other factors and publish them on their website and newspapers. They were also to follow appropriate internal procedures. It was illegal to obtain signed plain paper, stamp paper or blank cheques from customers.
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He said that the director boards of the companies were currently free to fix their interest rates. So, the government would urge the RBI to bring about checks on interest rates.
He said that no political intervention would be allowed in the ‘ >Operation Kuberan ’ against the blade mafia. Action would be taken against police officials conniving with the mafia.
The Minister said that he had received 5,712 complaints about blade mafia over phone and these had been referred to the police. The police had so far conducted 5,464 raids and registered 786 cases. As many as 466 persons had been arrested and Rs. 3.63 crore recovered as part of the operation and it would be intensified.
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Mr. Chennithala said that three persons had been arrested in connection with the attack on the Bishop House in Idukki and two more were to be arrested. KPCC president V. M. Sudheeran had expelled those involved in the attack from the party.