Inspection against non banking financial companies

In view of receiving several complaints against non banking financial companies, the Kamrup (Metropolitan) district administration has taken steps as per legal provisions to inspect such institutions at various places of Guwahati.
It is a mandatory requirement for any non banking financial institution to obtain NOC from the Deputy Commissioner of the district before operation of any financial schemes in the district besides permission from competent authorities like RBI and SEBI before applying for the NOC, said a district administration release today.
As per direction of the Kamrup (Metropolitan) district Deputy Commissioner today the Executive Magistrate and Divisional Deputy Superintendent of Police have begun inspection of non banking financial institutions at various places of the city, the release said.

For safety and security of the depositors' money the district administration has undertaken such a drive in the various locations of the city under provisions of section 5A (6) of the Assam Protection of Interest of Depositors in Financial Establishment (Amendment) Act 2013, the release said.
Urging the citizens not to panic due to the inspection drive, the district administration sought active co-operation from the people during the inspection period.
The public had lodged complaints to the district administration against non-banking financial companies regarding violation of the Financial Act, the release added.