Parliament passes resolution to form committee to assess viability of Gangjong Development Finance Private Ltd. after Kashag expressed no confidence in its future
DHARAMSALA, 31 March: The 17th Tibetan Parliament-in-Exile(TPIE) today passed a resolution to form a committee to assess the viability of the Gangjong Development Finance Private Ltd. of the Central Tibetan Administration’s(CTA) Finance Department.
The resolution was tabled in the House today during the last day of the 3rd session of the 17th TPIE after the 16th Kashag(Cabinet) led by CTA President Penpa Tsering expressed no confidence in the future of Gangjong Development Finance Private Ltd., a full-fledged non-banking financial corporation (NBFC).
With 33 votes in favour of the resolution tabled in the house, the Speaker will now form a 5 member review committee featuring lawmakers and financial experts to submit a report on the viability of the Gangjong Development Finance Private Ltd. to the parliamentary secretariat before the 4th session of the 17th TPIE.
The resolution also declared that the CTA’s NBFC will continue to function until the committee submits its report and the parliament reaches a decision thereafter
Gangjong Development Finance Private Ltd. was inaugurated in Jan. 2018 by CTA’s then-President Dr Lobsang Sangay. He described it as one of the most strategic programmes conceived and designed to drive forward Kashag’s 5-50 policy.
It became a full-fledged non-banking financial corporation (NBFC) a year later in 2019 after receiving its license from the RBI on December 13, 2018, as a Non-Banking Financial Institution.
Through Gangjong Development Finance Private Ltd., CTA provides loans at a minimal interest rate to support Tibetan Summer businesses across India with the goal to strengthen their self-reliance and sustainability to help them thrive economically as well as to strengthen the Tibetan economy and transform it into an economically self-reliant community.
The only difference between an NBFC and a normal bank is that while a normal bank can accept deposits and give withdrawal facilities, the NBFC can only sell its shares.