BHUBANESWAR: The Orissa Protection of Interests of Depositors (In Financial Establishments) Bill, 2011, was passed in the Assembly on Saturday. The Bill aims at protecting the interest of depositors in non-banking financial establishments and deposit acceptance activities of unincorporated bodies (UIBs). Finance Minister Prafulla Chandra Ghadei said the legislation would not only curb illegal activities of unscrupulous non-banking financial companies (NBFCs) and UIBs but also is expected to protect the interest of the depositors by way of return of their deposits with benefits/interests accrued there on at the instance of the State Government. The existing RBI Act does not have these provisions. The statement of objects and reasons of the Bill said nowadays, the NBFCs and UIBs have spread their branches all over the State. Some NBFCs and UIBs are alluring the public by various methods, taking huge deposits from them and thereafter the companies vanish overnight or fail to pay back the assured amount on due date or after its maturity for some reason or other, it added. It said as some NBFCs and UIBs collect and receive deposits with sole intention to defraud innocent depositors in different districts/remote areas, with or without applying for registration or when they have already been refused registration, such a special legislation has become imperative to curb their illegal activities. Since the district administration and police also function in remote areas, they will be able to keep a watch on the activities of these financial bodies and take immediate action, if any wrongdoing is noticed, it added.
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