Over 21 pseudo organisations operate in Mizoram: Pachuau

Aizawl, Jul 13 : At least 21 pseudo financial organisations are operating in Mizoram and local people are helping them flourish, according to state chief secretary Vanhela Pachuau.

The chief secretary today expressed grave concern that Mizos are unwilling to learn from past mistakes and letting money launderers cheat them.

Speaking at a seminar on the regulation of unauthorised elements of Non-Banking Financial Companies (NBFCs) and unincorporated bodies (UIBs) in Mizoram here today, Vanhela informed that at least 21 such Financial Institutions(FIs) are still operating in Aizawl, mainly in the commercial hub of Zarkawt.

''Most of them (illegal FIs) are already in trouble. The saddest part is that those pseudo banks from outside Mizoram are helped by the Mizos themselves to set up their base in Mizoram,'' the chief secretary said.

Mr Vanhela was sad that even though the people of Mizoram had been constantly victimised by such fake banks since the early 1980s, no one seems to be willing to learn a lesson from the past mistakes.

''These fake banks have been taking advantage of our greediness and our attitude of making easy and fast money. No one bothers about the accountability or authencity of a company so long it makes attractive offers,'' he said.

Admitting that the government has not done enough to contain such illegal financial activities due to certain problems, the chief secretary urged police and concerned state agencies to take more effective measures and make more use of laws and acts in this regard.

Not only the people, but also the banks have suffered a lot due to such illegal financial activities and it is high time we stop the menace with collective efforts.

The seminar held at I and PR conference hall was attended by concerned departments' officials and police officers.

P N Murthi, AGM (DNBS) and Rama Narang, assistant manager (DNBS) gave power-point presentations on an overview of the Regulatory Functions of Reserve bank of India over NBFCs and UIBs.

Earlier, Reserve Bank of India (RBI) deputy governor Subir Gokarn has voiced concern over financial organisations and banks operating in Mizoram without RBI registration and license and termed it a 'law and order' issue.

''If there are such institutions functioning without the required license then it is a law and order problem which should be taken up by the designated authorities,'' he said.

''We want the people to know that they should not deposit in fake banks and bogus financial institutions, but rather stay within the formal banking system in their best interests,'' he said.