RBI bans chit funds from taking public deposits

RBI bans chit funds from taking public deposits

Mumbai: The Reserve Bank of India (RBI) has banned chit funds from accepting public deposits with immediate effect, the central bank said in a Friday notification.

Any deposits accepted by miscellaneous non-banking companies, “other than from its shareholders as on date shall be repaid on maturity and shall not be eligible for renewal," RBI said.

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