Mumbai : In the wake of unearthing of multiple unauthorised deposit raising schemes and scams such as Saradha and PACL, RBI Deputy Governor R Gandhi said the Reserve Bank is working with the government on redefining as to what constitutes a deposit.
“We are working on redefining definition of deposits. The ‘deposits’, as it is defined today, is inadequate,” he told reporters after a conference of Chief Secretaries and State Finance Secretaries here. He said that in case of banks, the definition of a deposit is very clear, but it does not cover money collected by other entities for which the exercise is being carried out.
“We are discussing it with states and the Centre. We need to define in such a way that who will be the regulator for different types of collection of money. Today, certain things are clear, certain things are unclear. So in the unclear area we are trying to bring more clarity,” he said. Gandhi said amendments will have to be made in the laws once the redefinition gets done.
Meanwhile, RBI Governor Raghuram Rajan said at the meeting that the central bank brass discussed strengthening the state- level coordination committees so that unauthorised deposit taking can be dealt with in a better way. The comments from Gandhi come within days of capital markets regulator Sebi asking a PACL, Delhi-based property developer, to return Rs 49,100 crore to depositors, and after the busting of earlier scams like the one caused by the Saradha Group in West Bengal and two Sahara Group companies.
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Don’t go for debt waivers: RBI to states
Even as Andhra Pradesh and the newly-created Telangana continue with the demand of farm loan waivers, Reserve Bank Governor Raghuram Rajan asked the states to refrain from seeking concessions.
“Rajan cautioned against debt waiver schemes announced by some states, pointing out their adverse impact on the financial health of banks, whose capital needs have gone up due to enhanced prudential requirements and deterioration in asset quality and the macro-economy in general,” a release from the RBI said.
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