Bhubaneswar: Aiming to protect the interests of depositors in non-banking financial establishments and deposit acceptance activities of unincorporated bodies (UIBs), the State Government on Saturday passed the Odisha Protection of Interests of depositors (In Financial Establishments) Bill, 2011 in the Assembly.
Finance Minister Prafulla Ghadei said the legislation will help depositors in curbing the illegal activities of unfair non-banking financial companies (NBFCs) and UIBs as well as to protect the interests of the depositors.
Nowadays, the NBFCs and UIBs have spread their branches all over the State. Some NBFCs and UIBs are creating problems to the public by taking huge deposits and thereafter the companies vanishes without paying any money, added Ghadei.
He said as some NBFCs and UIBs collects and receive deposits with sole intention to cheat innocent depositors in different districts, such a legislation will be helpful to curb these illegal activities.
Even in remote areas the district administration and police will be able to vigil the activities of these financial bodies and can take immediate action, if such illegal work is noticed, he added.