Defaulting NBFCs

Sir, - The Finance Bill 2000 has been passed and the Reserve Bank has announced the credit policy. There is no reference to the plight of the depositors in the NBFCs. It is highly regrettable that a once vibrant sector is allowed to die, throwing thousands of employees jobless, depositors destitute and causing the closure of a well-established branch network built over the years. Of course, some of the managements are also to be blamed. There must be a self-regulatory cell in the RBI to make it accountable to the public. If there had been one, they would not have followed zig-zag policies culminating in their guidelines dated January 2, 1998 which had triggered the present crisis.

D. S. Venkataraman,

Chennai

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