Case Brief
What Happened
RBI cancelled, on December 17, 2002, the Certificate of Registration issued to Merbanc Financial Services Limited, Hyderabad, under Section 45-IA of the RBI Act, 1934. The company was therefore no longer permitted to transact business as a non-banking financial institution. RBI also prohibited the company from accepting deposits under Section 45MB(1) and from alienating assets under Section 45MB(2), while noting that it must continue to repay public deposits in accordance with the deposit contract terms.