What changed
RBI issued a fresh circular on September 28, 2005, following a Supreme Court directive, requiring RRBs to submit bank statements for Golden Forests (India) Ltd and its associate/subsidiary companies. This expands on a previous November 2004 circular, now specifically to detect fraudulent deposits received after December 2000 when the company had stopped business.
What it means for you
RRBs that held accounts for Golden Forests or its listed entities must dig out historical statements from December 2000 to account closure and send them to the committee in Chandigarh. This is critical to filter out bogus claims—over 12 lakh claims were received—and protect the integrity of the claims process. Non-compliance could invite regulatory or legal scrutiny.
What you must do
- Identify if your RRB held any accounts for Golden Forests (India) Ltd or any of the 82+ subsidiary/associate companies listed in the annexure.
- Retrieve bank statements for those accounts from December 1, 2000 until the date the accounts were finally closed.
- Send the statements to the Office of the Chairman, Committee-Golden Forest (I) Ltd, Bungalow No. 60, Sector 4, Chandigarh (Tel: 0172-2740134).
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Banks that held accounts for Golden Forests (India) Ltd or its subsidiaries/associates (88 subsidiaries and 11 associates listed)
Why are bank statements from December 1, 2000 needed?
The Supreme Court committee found that some agents continued collecting deposits and issuing receipts after the company stopped business in December 2000. Comparing bank statements helps verify if those amounts were actually deposited in the company's accounts, weeding out bogus claims.
What if my RRB never had an account for Golden Forests or its subsidiaries?
If your RRB did not hold any such accounts, no action is required beyond acknowledging receipt of the circular to your RBI Regional Office. The directive applies only to banks that had/have accounts for the listed entities.
Is there a deadline for sending the statements?
The circular does not specify a deadline, but given the committee has already received over 12 lakh claims, prompt action is expected. Send the statements as soon as possible to avoid delays in the claims verification process.