What are the details you need to know for the Sachet launched by RBI?
Well, speaking of India, it is such a country where the people are always looking for source of incomes, especially from the banks and post offices. And in such circumstances, any schemes or fixed deposit rate increment becomes an instant hit. Any individuals, especially the small investors, business organizations and the retired individuals look out for such schemes. And they usually get attracted to the high end interest rates that are offered by different private organizations, even without knowing proper details or making a background check, they just deposit the money with a hope of getting a higher return.
Well, we are not saying that all the private organizations are fraud here, but a lot of organizations are there that collect the hard earned money from public by showing minimum proof of their authenticity. These organizations do not have the necessary approvals. There are several such organizations that collect deposits illegally through the dubious loans and that too at very low interest. These companies lure the retail investors and they make use of the financial securities like the Non Convertible Debentures. And this causes immense loss to the hard earned money of the common people. So what is the step that RBI has taken up?
The Sachet
Just before the announcement of the monetary policy, it has been announced by the RBI that a Sachet web portal shall be launched for the prevention of illegal deposits and collections. The beneficial aspect of the website is, it is going to help to increase the co-ordination among the regulators and the State Government agencies. And this is why it will be really useful in reducing the unauthorized acceptance of the deposits by any unscrupulous entities.
What is going to be the role of Sachet?
According to the reports, the Sachet is a State level Co-ordination Committee (SLCC) website. This is such a portal that will offer the people the complete information about the entities who are allowed for accepting the deposits. At the same time, people will be able to make complaints share information about any illegal acceptance made by unscrupulous entities.
Speaking about the SLCC’s website, Raghuram Rajan and Sebi played a really important role in revitalizing the SLCC. According to the statement made by Rajan, there are innumerable fly by night operators who do not fall in any specific regulatory ambits. But they need to be stopped immediately. The market intelligence from the SLCC website is going to prevent the Ponzi Scheme Crime. The regulators and law agencies should be brought within the limitations of such operators of SLCC website that targets to prevent the hard earned money of the common people.
What are the features of Sachet?
The Sachet is solely focused on the security of the money of people. And this is why it is going to offer the following features:
The member of public on this website can check whether a certain entity is looking to accept public deposits and is registered with a certain government body. Also, we will have the option of checking whether the entity has the permission for accepting deposits.
The website offers regulations that are prescribed by the financial regulators and these regulations need to be followed by different entities.
The members of public will have the option of tracking the deposits and file a complaint within this website, if they find any illegal entity that has accepted money from them. Or in case any such entity has defaulted while repaying the deposits.
Any illegal information can be shared regarding illegal deposits made by unknown entities in this portal.
What is the SLCC?
According to the reports, apart from RBI, only few bodies have the right of regulation control and they are known as SLCC, SEBI, National Housing Bank, IRDA, ROC and certain state government departments. These state government departments include the Finance Department, law Department and certain Police Authorities.
The SLCC’s meet up with the top officials, from all these above mentioned agencies and they share information about the entities which have been involved about the unauthorized acceptance of deposits. Actions can be taken up against them in certain time.
How to check if the company can collect deposits from public?
Let us assume that you are looking to invest in a company known as Royal Reserve LTD for a fixed deposit scheme. Now these are the steps that you need to follow:
Visit the Sachet portal.
Then go to the Registered Entities section.
Now, if Royal Reserve LTD is an NBFC and regulated by the RBI, you have to click on RBI link.
You get redirected to the RBI site. Now check the list of NBFC’s that have CoR to accept public’s deposits. The COR is the certificate of registration and if Royal Reserve has such registration then it can accept deposits from public.
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