Harikrishnan, K; Dr.George, Varghese K(Cochin University of Science and Technology, July 30, 2008)
[+]
[-]
Abstract:
In the absence of entry barrier or regulatory restrictions, Non Banking Financial
Companies frantically grew and accessed the public deposit without any
regulatory control. The deposit of NBFCs grew from Rs. 41.9 crore in 1971 to
53116.0 crore in 1997. This growth was the result of a combined effect of
increase in the number of NBFCs and increase in the amount of deposits. The
deposits amazed as above was invested in various assets especially that in
motor vehicles by these asset financing NBFCs. Various tactics were adopted
by these NBFCs and their agents for recovering the receivable outstanding from
such assets. Both central government and RBI were concerned about the
protection of depositors‘ interest and various committees were set up to frame a
comprehensive regulation for the functioning of these NBFCs.
Description:
School of Management Studies, Cochin University
of Science and Technology