Sahara, Peerless repaid depositors Rs 20,000 cr since 2007-08

.....The RBI had fought a pitched legal battle with the RNBCs over what it termed their “inherently unviable business model”, expressing concern over the mushrooming growth of financial investment companies that were offering staggering rates of interest to depositors. Between 1987 and the mid-1990s, the RBI was engaged in a running battle with Peerless after it issued orders barring the RNBC from accepting fresh deposits. While the Supreme Court allowed Peerless to continue its business, it told the RBI to take steps to “prevent exploitation of ignorant subscribers”...............

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