Govt releases list of 9,500 risky non-banking firms

The government on Monday released a list of 9,500 "high risk" non-banking financial companies (NBFCs).

The list includes Adani Group's NBFC arm Adani Capital Pvt Ltd.

Other big names on the list are Reliance Finvest Pvt Ltd, Hyundai Capital India Pvt Ltd, Hinduja Finance Pvt Ltd, Century Ply & Boards Pvt Ltd, Moody's Investment Company India Pvt Ltd, Dlf Finvest Limited, Bombay Gas Co Ltd, Srestha Finvest, Kamdhenu Finance and Tribhuvan Finlease & Developers.

These companies are not compliant with the Prevention of Money Laundering Act (PMLA) rules as on January 31.

The Financial Intelligence Unit (FIU), the national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions, released the list early on Monday.

The PMLA requires all NBFCs to appoint a principal officer in the financial institutions and report all suspicious and cash transactions of over Rs 10 lakh to the FIU.

The NBFCs came under government lens after they were found exchanging unaccounted old Rs 500 and Rs 1,000 notes post demonetisation.

To promote conducive credit culture among NBFCs and to regulate their credit system, the RBI had recently launched ombudsman scheme for NBFCs that would ensure redressal of complaints against deficiency in their services concerning deposits, loans and advances.

DH News Service