NEW DELHI: The Reserve Bank of India plans to introduce comprehensive guidelines to protect consumers from being cheated by entities regulated by it, such as banks or finance companies.
“The Financial Sector Legislative Reforms Commission report recommends adoption of consumer protection framework that will empower and require regulators to ensure consumer protection for the financial activities regulated by them,” said N S Vishwanathan, executive director at RBI on the sidelines of an event organised by Assocham here on Friday.
“RBI is in the process of framing comprehensive consumer protection regulations based on domestic experience and global best practices,” he said, adding, the existing norms would be strengthened.
On aligning fund raising requirement with new Companies Act, Vishwanathan said, in June 2013, RBI issued a circular saying that private placement norms applicable to non-NBFCs will be applicable to NBFC as well.
“Subsequently, the Companies Act now changed the rules with regard to private placement, he said. ``It says you can raise money through private placement only from 200 persons in a year. If you want anything beyond that you have to undertake public issue. So, we have to align our guidelines with the new Companies Act.”