Odisha has become a den of fly by-night chit fund companies operating illegally in the state. The RBI has alerted the crime branch to keep tabs on them. The apex bank has been receiving complaints of large scale illegal money transactions carried out by these entities headquartered outside Odisha.
Meanwhile, the RBI has decided to begin awareness campaigns against these companies in conjunction with the crime branch of the state, a news outlet reports.
Sources say what defies explanation is these companies are indulging in their illegal activities with impunity despite the ongoing CBI investigation and a massive public anger over their activities.
The CBI is already probing illegal activities of about 50 multi-state credit cooperative societies including Artha Tatwa Group, Swastik India, Micro Finance, Samruddha Jeevan. These societies have been taking deposits from the public without permission to do so.
RBI sources say the societies are entitled to provide loans to people, but not authorized to collect deposits by luring people with high interest rates.