Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 May 2005
Case Brief
On May 10, 2005, the Reserve Bank of India cancelled the certificate of registration granted to Alpic Finance Limited, Mumbai, for carrying on the business of a non-banking financial institution. As a result, the company cannot conduct NBFC business anymore. RBI also prohibited the company from accepting deposits and from alienating its assets, citing its powers under Section 45IA and Section 45MB of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Alpic Finance Limited under Section 45IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Consequent to the cancellation, the company cannot transact NBFC business. RBI also exercised powers under Section 45MB(1) and 45MB(2) to prohibit the company from accepting deposits and from alienating its assets.
Operating Impact
Alpic Finance Limited must stop NBFC operations and is barred from accepting fresh deposits or transferring/disposing of assets. The action affects the company directly and protects depositors and other counterparties from continued NBFC activity.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1) of this Act
- Section 45MB (2) of this Act
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 10 May 2005
- Effective From
- 10 May 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC