Protect Your Money before Investing
Which Institutions Can Raise Public Deposits?
The Reserve Bank of India authorizes cooperatives, banks and few non-banking finance companies (NBFCs) to accept deposits. The Reserve bank provides special lisences to these non-banking finance companies to raise deposits up to an authorized limit. The ministry of corporate affairs also permits some companies to raise deposits from the public.
Salary earners' societies and Cooperative credit societies can also acknowledge deposits but only from their members.
RBI registered NBFCs are not authorized not raise deposits unless by means of certificates. Some entities like partnership firms or individuals or any group also cannot raise deposits although involved in financial business.
A strict policy is followed by RBI to permit organizations to raise deposits. RBI’s prime concern is to safeguard the depositors’ interest. The Non-Banking Finance Companies (NBFCs) utmost can pay 12.5 percent interest per year to the depositors.
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