Case Brief
What Happened
The Reserve Bank of India issued an order under Sections 45K and 45MB(1) of the RBI Act, 1934, prohibiting Sahara India Financial Corporation Ltd. (SIFCL), a residuary non-banking company based in Lucknow, from accepting public deposits with immediate effect. RBI said the company had continuously violated multiple directions and guidelines, including those on maintenance of directed investments, minimum interest payment, ALM norms, KYC requirements for deposit accounts and agent disclosures, and timely communication to depositors and repayment on maturity. RBI directed SIFCL to repay deposits as they mature, maintain the required directed investments, lodge securities with the designated bank, notify agents and employees, and continue complying with applicable RBI requirements until all deposits are repaid with interest in full.