Shift Given the arbitrary complaints of auto finance companies, the transport department has now started tightening the screws on them. The department has issued new instructions. Under this, vehicle finance companies will have to take NOC from the Reserve Bank before starting work. The firm also has to register under the Companies Act. In the order issued by the Commissioner of Transport Department to the district transport authorities, it has been said that in the future, the same company will be issued a trade certificate for the financing of vehicles under the provisions of the Central Motor Vehicles Act, 1989. Which has taken the NOC from the Reserve Bank.
Also, it was also necessary for the companies to get the registration of the firm under the Companies Act. About 50 finance companies are registered in the Department of Transportation.his will be effecter taking NOC from RBI, auto finance companies will have to comply with its rules. They will not be able to charge arbitrary interest rates. Also, instructions issued from time to time from RBI will also have to be followed. companies will look at
The new order will allow many fake companies to work in the field of vehicle finance. Until now, the transport department recognized the same by opening an account in the bank and presenting its certificate. This led to many firms that finance the vehicles.
These firms ran arbitrarily in the vehicle's finances. It charged the customers with interest. On returning the money, there was complaints of indecency to the owner of the vehicle. Many times the vehicle owner was stripped of his vehicle. So far, cases of uproar and kidnapping began to emerge. When these cases came to light, the Transport Department introduced a new system. order has come Recent Transportation Commissioner's new instructions have come recently. There will be further work to suit the same. In which companies operating in vehicle finance need to get the NOC of the RBI. Also registered with the Registrar of Companies.
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