RBI sets to form new rules and regulation on MLM companies

RBI sets to form new rules and regulation on MLM companies

RBI has come with a positive circular given to all banks about the payment given by SAOL to its panelist account in India.The Circular is yet to be publish and can be available by today or Monday on official website of RBI. This circular is the instruction to banks that they can allow TT(Telegraphic Transfer) given by SAOL from outside India to remit the amount into Indian bank account of the panelist.

The Ministry of Corporate Affairs (MCA) and Reserve Bank of India (RBI) are working closely to frame rules for all MLM companies in India. As per sources there will be strict norms for MLM companies and all MLM companies who are operating in India will have to get their firm register with the government.

The need for MLM law in India become evident when MCA some time back showed incompetence to probe Speak Asia on the grounds that it is not registered in India but later after investors’ forum pleaded to Prime Minister to intervene on the matter and on Prime Minister’s Office direction MCA initiated fresh investigation on Speak Asia.

The Serious Fraud Investigation Office (SFIO) has submitted its analysis on the MLM companies to MCA. According to the SFIO reported that most MLM companies operate via agents.

People in states like Manipur, Kerala, and Andhra Pradesh lost thousands of crores to MLM scams in the name of investments.