Rajan says tackle illegal deposit raising early

Reserve Bank of India Governor Raghuram Rajan has said that it is important to tackle illegal deposit raising early so that people do not lose their hard earned money.

 “We have to tackle illegal deposit raising issue before the fly-by-night operator runs away with the money. We have to stop the crime in progress,” Rajan said while launching ‘Sachet’ – a website from which members of public would be able to obtain information regarding entities that are allowed to accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities.

 Initiating quick follow up and taking cases to logical conclusion by punishing the guilty is paramount to deter entities in future from carrying out unlawful activity, Rajan added.

 Rajan also said that the fact that many of these operators do not fall under any regulator is a challenge.

 With increasing cases of phishing mails from RBI, the central bank governor clarified that the RBI never sends any mail promising money.

“I suggest all of us should ask, if they have got Rs 50 lakh to give me, why do they need me to send Rs 25,000 in the first place? Why can’t they just deduct the Rs 25,000 and send me the remainder? That question should be asked by anybody who gets such a solicitation,” Rajan said.

 Explaining the features of the website, Deputy Governor S S Mundra said that members of the public can check on the website whether or not a particular entity seeking to accept public deposits is registered with any regulator and whether the entity is permitted to accept deposits.