Govt has moved to curb ponzi schemes: Minister
7 Aug 2013 11:04 PM GMT
Taking steps to crackdown on ponzi schemes, the government on Tuesday said that the RBI has advised banks to carry out quick reviews of accounts opened in the names such as market agencies and retail traders, especially those cases where large number of cheque books have been issued.
Minister of State for Finance Namo Narain Meena informed the Rajya Sabha that an ordinance has been promulgated to amend the Sebi Act that would provide more powers to act against illegal collective investment schemes.
‘RBI has also advised banks to be careful in opening of accounts of the marketing/trading agency, etc, and ensure strict compliance with the Know Your Customer (KYC) and Anti Money Laundering (ALM) guidelines,’ he said in a written reply.
In a separate reply, Meena said the root cause of mushrooming chit funds companies could be found in the failure of the formal financial institutions catering to the needs of people for savings and thrift schemes by expanding their geographical coverage.
Minister of State for Finance Namo Narain Meena informed the Rajya Sabha that an ordinance has been promulgated to amend the Sebi Act that would provide more powers to act against illegal collective investment schemes.
‘RBI has also advised banks to be careful in opening of accounts of the marketing/trading agency, etc, and ensure strict compliance with the Know Your Customer (KYC) and Anti Money Laundering (ALM) guidelines,’ he said in a written reply.
In a separate reply, Meena said the root cause of mushrooming chit funds companies could be found in the failure of the formal financial institutions catering to the needs of people for savings and thrift schemes by expanding their geographical coverage.
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