Tripura Amending Law To Crack Down On Illegal Chit Funds And Non-banking Financial Companies

The Tripura government will introduce an amendment to an existing law in the assembly tomorrow (15 December) and hope to get it passed in order to curb the activities of illegal chit funds and non-banking financial companies (NBFCs), a senior state official said on Wednesday.

The official stated the present Protection of Interest of Depositors Act was enacted several years back and now requires amendments to deal with unauthorised chit fund groups and NBFCs. Tripura assembly Speaker Ramendra Chandra Debnath said Finance Minister Bhanulal Saha will table the amendment bill on Thursday and it is likely to be passed on Monday after discussion.

Unauthorised chit fund companies and NBFCs have mushroomed in the north-eastern region in recent years, luring depositors by promising hefty interest rates ranging from 25 to 30 per cent. After collecting money, their operators quietly wind up business and vanish.

With inputs from IANS