Mizoram issueS warning against unlicensed financial institutions

Aizawl, Feb 12 (UNI) The Mizoram administration has warned the non-banking financial institutions against carrying out business without license from the Reserve Bank of India (RBI).

In an official statement, state's Chief Secretary Haukhum Hauzel advised people to be careful against non-banking financial institutions.

This has come in the wake of Legacy Savings Corporation and Business Loans Undertaking Limited justifying itself saying it was registered by the Labour and Employment Department.

The statement, however, pointed out that the registration with the above mentioned department had nothing to do, whatsoever, with financial transactions of the corporation and that this registration dealt only with the employer and employees. It also added that the department has already cancelled the registration.

It stated that under the RBI directive FIs cannot offer an interest above 11 per cent per annum for any deposit.

The state government is currently investigating six other non-banking financial companies, which have sprung up in the state capital, state home department sources added.

UNI