Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Feb 2005
Case Brief
On 29 January 2005, the Reserve Bank of India cancelled the Certificate of Registration of Al-Ameen Islamic Financial & Investment Corporation (India) Ltd., Bangalore, under Section 45IA of the RBI Act, 1934. As a result, the company cannot carry on the business of a non-banking financial institution. RBI also prohibited it from accepting deposits until further orders and from alienating assets without prior written permission, invoking Section 45MB(1) and 45MB(2).
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Al-Ameen Islamic Financial & Investment Corporation (India) Ltd. on 29 January 2005 for carrying on the business of a non-banking financial institution. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution. It also notes prohibitions on acceptance of deposits until further orders and on alienation of assets without prior written permission of RBI, citing Section 45IA and Section 45MB(1) and (2) of the RBI Act, 1934.
Operating Impact
The company loses its ability to operate as an NBFC and must stop non-banking financial business. It may not accept deposits, and it cannot sell or otherwise alienate assets without prior RBI written permission. Affected parties include customers, depositors, and counterparties dealing with the company.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1)
- Section 45MB (2)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 29 Jan 2005
- Effective From
- 29 Jan 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC