Illegal banks a law and order problem in northeast: RBI

AIZAWL - Banks and financial institutions without proper registrations are a “law and order problem” and both the central and state governments should take action against them, Reserve Bank of India (RBI) Deputy Governor Subir Gokarn has said.

“The central bank has been asking the people not to deposit hard-earned money in fake banks and financial institutions. They should transact their any kind of business within the formal banking system in their best interests,” Gokarn told reporters here.

“If there are any banks or financial organisations functioning without required licences from the RBI then it is a law and order problem which should be taken up by the state or Centre or appropriate authorities,” he said, but did not elaborate further.

Regarding the proliferation of counterfeit Indian currency in the country in general and the northeastern region in particular, Gokarn said RBI had taken a series of measures to deal with the menace, including printing them in paper difficult to duplicate.

Accompanied by top central bank officials, Gokarn was in Mizoram as part of an outreach camp organised by the RBI in at Seling, a remote village some 55 km from the capital of this mountainous northeastern state, and to take banking services to people in far-flung areas.

Senior officials interacted with daily wagers, small farmers, women, students, self-help groups, senior citizens, housewives and other target groups to familiarise them with various banking facilities as also with the security features of currency notes.

Different banks, that set up their counters in the day-long camp, also exchanged soiled and mutilated currency notes for coins besides addressing their complaints with regard to banking facilities. The banks also accepted applications for ‘no frills accounts’.

— Indo-Asian News Service