West Bengal government plans legislation to protect depositors
By Our Banking Bureau | 08 Dec 2003
Kolkata: The West Bengal state government is planning legislation to protect the interest of depositors in financial establishments.
Under
the proposed bill, which has now been referred to the
Standing Committee on Economic Affairs of the State
Legislative Assembly, every employee of a fraudulent
financial establishment from the promoter to the staff
will be made liable for any unscrupulous activity of
the establishment.
Explaining the rationale behind this new legislation, the state finance department said the middle and the poorer sections of the society have been caught at the wrong end of the mushrooming growth of financial establishments in the state.
The
financial establishments have raised money from the
public by making unviable promises of high returns,
with little intention of redeeming on the promises or
even returning amounts on maturity.