The Reserve Bank of India chief general manager, in charge of the department of non-banking finance companies, assured a delegation of the Investor Grievances' Forum (IGF) that the apex bank would initiate a probe into the alleged irregularities in Tata Finance Ltd.
Led by general secretary Shailesh Ghedia and vice-president Bharat Kotecha, the IGF team took up the issue of financial irregularities in the NBFC during their meeting with RBI official L P Fonseca on Thursday.
Fonseca said that limited supervisory power was one of the lacunae in monitoring or keeping a direct check on the non-banking finance companies (NBFCs).
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However, yesterday's meeting was the forum's second with the RBI since July 12, on the issue of non-refund of fixed deposits by NBFCs.
The IGF in its earlier meetings provided a list of 34 NBFCs, which among others include Alpic Finance, CRB Capital, Ceat Finance, DCM Finance, DSJ Finance, Lloyd Finance, Enarai Finance, Onida Finance, Kothari Oriental, Mafatlal Finance, Pennar Paterson and Sanjeevani Savings, against whom various courts have initiated proceedings, including criminal, and/ or issued winding up orders and sought their current status.
The IGF urged RBI authorities for a coordinated effort with the Company Law Board to monitor the activities of NBFCs.
Kotecha said, of the 36,000 NBFCs, which had applied for registration with the RBI, only 750 qualified for registration.
According to him, there are more than 1,00,000 NBFCs in existence and they posed a severe threat to the investors' interest.