RBI toughens terms for finance companies
Posted on: 11/Nov/2014 2:13:57 PM
Reserve bank of India has toughened the terms and conditions for the functioning of finance companies other than banks. According to the new terms, the Reserve Bank has increased the total amount of capital investment for all finance companies that collects deposit from its customers.
The existing value of minimum capital investment is Rs 25 lakh. This will be hiked to Rs 2 crore by the year 2017. Following the fraudulence occurred with West Bengal’s finance companies including Sarada, Reserve Bank of India is targeting to make the rules stringent.
