It is surprising that after receiving 37,422 applications for registration from various NBFCs in early January 1997, the RBI has scrutinised only 9,190 applications till October 31, 1999. Of this, 7,928 NBFCs were issued certificates of registration, while 1,262 applications were rejected. "It is indeed shocking and surprising that even after three years, as many as 28,232 applications from NFBCs are pending. There is no schedule, time table and action plan from the RBI for the remaining applications. This may be due to utter chaos inthe NBFC division of the RBI. Whenever the IGF approached various regulatory agencies, the government always had one excuse or the other," IGF said.

IFG has strongly condemned and criticised the lethargy and chaos in the RBI and finance ministry about regulating the NBFCs. ``Lakhs of small investors and depositors have suffered as hundreds of NBFCs are not repaying interest and deposits,'' IGF said.

IGF has expressed surprise over the decision of the RBI and the Finance Ministry to come out with a proposal for a separate arrangement - on the lines of the SEBI - to control these NBFCs. However, neither the RBI nor the Finance Ministry is prepared to take the responsibility to see that investors get back their funds. "There is no machinery, mechanism or information available with the RBI, the Company Law Board, Finance Ministry or the SEBI about the names of NBFCs defaulted and the methods to solve the investor grievances,'' it said.

The Western Zone office of the Company Law Board says it has initiatedaction against 42 NBFCs while four NBFCs has applied for rescheduling the deposits.