West Bengal's saving scheme may face RBI opposition

.....If the state government plans to raise any deposits, it has to be routed through either of the two NBFC bodies. Otherwise, the state would need a special permission from the Central government to raise deposits. RBI’s opposition to any non-banking entity raising deposits was accentuated by a recent statement by  RBI governor D Subbarao that, “deposit taking should eventually be restricted only to banks which are tightly regulated. Deposit collection by non-banking companies should be gradually minimized, and eventually eliminated.”.....

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