Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Sept 2005
Case Brief
The Reserve Bank of India cancelled the certificate of registration of Automobile and General Finance Company Limited, Agra on June 25, 2005 under Section 45-IA of the RBI Act, 1934. Following the cancellation, the company is no longer permitted to carry on NBFC business. RBI additionally prohibited the company from accepting deposits and from alienating its assets under Section 45-MB.
Why RBI Acted
On June 25, 2005, the Reserve Bank of India cancelled the certificate of registration granted to Automobile and General Finance Company Limited, Agra under Section 45-IA of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution. RBI also prohibited the company from accepting deposits and from alienating its assets under Section 45-MB(1) and Section 45-MB(2).
Operating Impact
The company must stop NBFC कारोबार immediately and cannot accept fresh deposits or dispose of assets. Depositors and other counterparties face the consequences of the company’s loss of registration and the accompanying restrictions.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- Section 45-MB (1)
- Section 45-MB (2)
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Jun 2005
- Effective From
- 25 Jun 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC