RBI State-Level Coordination Committee Focuses on Digital Frauds and Investor Safety

A major focus of the SLCC meeting was the discussion on the effective implementation of the Banning of Unregulated Deposit Schemes (BUDS) Rules in Sikkim under the BUDS Act, 2019.

The 8th State Level Coordination Committee (SLCC) Meeting, a vital inter-agency platform for addressing financial sector irregularities and promoting investor protection, was held under the aegis of the Reserve Bank of India (RBI), Gangtok, on March 26, 2025. The high-level meeting took place at the Tashiling Secretariat and was chaired by Shri Ravindra Telang, Chief Secretary, Government of Sikkim. Shri Thotngam Jamang, Regional Director of RBI, convened the session, which drew participation from key officials of regulatory bodies and the state government.

The meeting brought together dignitaries from various regulatory and enforcement institutions, including the General Manager of RBI Gangtok, officials from the Securities and Exchange Board of India (SEBI), Kolkata, and senior representatives from Sikkim's Law, Home, Finance, and Information & Public Relations Departments. Other prominent attendees included the Registrar of Cooperative Societies (RCS), senior police officials such as the IGP (CID), IGP (Law and Order), DIGP (Range), and DIGP (Special Branch).

A major focus of the SLCC meeting was the discussion on the effective implementation of the Banning of Unregulated Deposit Schemes (BUDS) Rules in Sikkim under the BUDS Act, 2019. The Act aims to protect gullible investors from fraudulent schemes by banning unauthorized deposit-taking activities. The committee emphasized the need for proactive monitoring and seamless coordination between enforcement agencies and regulatory authorities to prevent exploitation through unregulated financial schemes.

Another significant topic of discussion was the rising number of digital financial frauds being reported through the national helpline 1930. The Sikkim Police presented an overview of various fraud cases and the total recoveries made through swift police action. The committee appreciated the efforts of the cybercrime wing and reiterated the importance of public vigilance and timely reporting of such crimes.

The RBI representative presented a detailed analysis of the emerging trends in digital fraud, including phishing, fake investment apps, UPI-related scams, and impersonation fraud. The Regional Director outlined the regulatory initiatives being undertaken by the RBI to curb such practices. These include awareness campaigns, stricter digital KYC norms, and collaboration with fintech players and banks to enhance transaction security.

One of the key tools discussed during the meeting was the Sachet portal, an online platform developed by RBI that allows citizens to verify the legitimacy of financial entities and report suspicious schemes. All stakeholders were encouraged to promote the use of this portal widely, particularly in rural and semi-urban regions, where financial literacy levels remain relatively low.

SEBI officials shared their ongoing efforts to promote Investor Awareness Programs (IAPs) across the state, targeting different sections of society including school and college students, women, senior citizens, and small investors. They highlighted the need for continuous education on identifying safe investment channels, understanding risk-return trade-offs, and lodging grievances through proper channels.

The RBI and SEBI jointly emphasized the importance of Customer Grievance Redress Mechanisms, and highlighted how these systems are being strengthened through better responsiveness, accessibility, and integration with technology platforms. They also elaborated on the grievance escalation matrix, time-bound resolution procedures, and the ombudsman frameworks in place.

In his closing remarks, Chief Secretary Shri Ravindra Telang lauded the initiatives undertaken by RBI, Gangtok, in promoting financial literacy and inclusion. He noted that RBI’s outreach programs, conducted in collaboration with local authorities, have significantly contributed to improving the financial awareness of Sikkim’s population. He urged all departments to work in tandem to ensure that financial frauds are minimized and citizens are empowered to make informed financial decisions.

The meeting concluded with a call for greater inter-agency coordination, timely data sharing, and consistent public outreach to combat the growing menace of financial fraud. All stakeholders reaffirmed their commitment to building a safer financial ecosystem in Sikkim through continuous dialogue, vigilant enforcement, and proactive public engagement.