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Beware of fake company accepting deposits: RBI

Posted by on July 1, 2011 0 Comment

Hyderabad: Pointing out that some a seemingly foreign financial institution by the name of Forex Achievements is misleading the general public by claiming that it is registered with the Reserve Bank of India, the RBI on Friday issued a warning to the general public against depositing their money with unincorporated financial bodies.

In a statement, the RBI said that it has come to its notice that some entity, which seems to be a foreign one, is operating in India and carrying out business, including acceptance of deposits, without obtaining a Certificate of Registration (CoR) from RBI.

The company is misusing the name of RBI by displaying a fake CoR on its web site for collection deposits from the public.

The RBI said that it would like to clarify to the general public that no company / entity by the name, Forex Achievements is registered as a company under the Companies Act, 1956 which is a prerequisite for obtaining CoR from the Bank.

The CoR bearing Reg No. 07.00410 dated April 07, 2010 displayed by the entity on its web site is a fabricated one and not issued by RBI to it.

The RBI cautioned the general public not to deposit money with such unincorporated bodies. Persons depositing money with such unincorporated bodies would be doing so at their own risk.

The RBI further added that Under Section 45 – S (1) of the Reserve Bank of India Act, 1934, unincorporated bodies that are carrying on the business of a financial institution or whose principal business is that of receiving deposits are prohibited from accepting deposits from the public and the State Governments are empowered to take action against such entities under Section 45T (1) of the RBI Act 1934.

Money circulation schemes are also banned under the Prize Chit and Money Circulation (Banning) Act 1978 and are governed by the respective State Governments. Hence all complaints on unauthorised acceptance of deposits and running of money circulation schemes, when received by the Reserve Bank are immediately referred to the Economic Offences Wing of the concerned State Governments.

The RBI further warned the public to be cautious in making investments with such entities.

Before making investments, the investors were advised in their own interest to visit the website of the Reserve Bank of India to check whether the companies they are placing deposits with are registered with Reserve Bank and entitled to hold deposits.

The names of such companies are available on RBI’s web site at www.rbi.org.in–sitemap–>NBFC List.(INN)

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