Fake banks concern officials in Mizoram

Aizawl, Sep 14 (UNI) Mizoram chief secretary Hauzel has reiterated his grave concern over the rapid growth of fake banks in the state.

In a meeting with RBI Executive Director V S Das, Mr Hauzel regretted that the people who were operating illegal banks in the state had personally attacked him following his efforts to curb such banks.

Underlining that such banks even offered a 12 per cent interest rate per week, Mr Hauzel stressed the urgency for RBI's direct intervention. The RBI official also assured assistance to the Mizoram government to fight such illegal financial organisations.

According to him, one of the fake banks called Kar Khat Bank (one week bank) was active at Aizawl. It is not known who run this bank The meeting focused on how the people of Mizoram, particularly in the rural areas, could have the best use of banks. The RBI suggested that the state government shold make a list of areas where a bank was yet to operate and submit it to the apex bankI.

Furthermore, the chief secretary emphasised on the need to establish currency chests at Tlabung and Chawngte near Indo-Bangla border, which he said had been kept pending over the past few years.

He also pointed out that foreign exchange facility at Zokhawthar near Indo-Myanmar border would boost the border trade.

One of the biggest concerns of Mr Hauzel which he voiced repeatedly to the RBI official was that some bank managers in Mizoram demanded security deposit or mortgage from their loanees, which was against the instrctions of the RBI and the Centre.

Mr Das strongly advised for formal complaints against such illegalities to the government to ensure appropriate actions.

Mr Hauzel also informed the RBI official that some banks officials often refused to publicise circulars issued by the ministry of small and medium industries and the RBI regarding loans, adding even the state industries department was usually unaware of such circulars.

On the part of the people, the chief secretary also highlighted that poor recovery of loans had been impeding smooth inflow of funds into the state.

UNI ZS SB RN2001