Newmai News Network
Aizawl | November 20
The Mizoram Legislative Assembly on Wednesday passed the Mizoram Protection of Interests of Depositors Bill.
The bill introduced by Chief Minister Zoramthanga seeks to protect the interest of depositors in financial establishments.
Zoramthanga said that the bill, when enacted, would check on fake financial banks and establishments. He also said that under the act, every financial establishment has to obtain no objection certificate from the concerned deputy commissioners of the districts before starting operation in the state.
Every financial establishments have to furnish a quarterly return within one month of the expiry of each quarter of a financial year. Whoever violates the provision of the act shall be punishable with fine which may extend up to Rs 1 lakh.
The existing Mizoram Protection of Interest of Depositors (in financial establishment) Act 2002 and its subsequent amendments have been repealed
Zoramthanga said that the existing act twice in 2011 and 2018 but certain provisiosn like the power to remove difficulties, protection of action taken in good faith, and the issuance of no objection certificate to financial establishments for commencement of operation are still missing in the act.. Besides, there seems to be a few erroneous classification of chapters in the act which needs to be revised, the chief minister added
Instead of amending the existing act, the whole act itself be re-enacted on the Assam Protection of Interest of Depositors (in Financial Establishment) Act, 2000 as recommended by the RBI.
Zoramthanga then said that the new bill, when enacted, will help in nailing unincorporated entities and companies from illegally accepting deposits.
The new act will also make offences, such as, unauthorized acceptance of deposits by any entity, firm or company and unlawful financial activities can be immediately imprisoned and prosecuted, he added.
