Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Sept 2003
Case Brief
On August 30, 2003, the Reserve Bank of India cancelled the Certificate of Registration granted to BCL Financial Services Limited, Kolkata, for carrying on the business of a non-banking financial institution. The action was taken under Section 45IA of the RBI Act, 1934. Following the cancellation, the company cannot transact NBFC business and has also been prohibited from accepting deposits and from alienating its assets under Section 45MB(1) and 45MB(2). The release notes that the company remains obligated to repay any public deposits according to the contractual terms, if any.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to BCL Financial Services Limited under Section 45IA of the RBI Act, 1934. As a consequence, the company was prohibited from transacting the business of a non-banking financial institution, and was also prohibited from accepting deposits and alienating assets under Section 45MB(1) and 45MB(2). The company must still repay public deposits as per the terms of the deposit contract, if any.
Operating Impact
BCL Financial Services Limited must stop NBFC operations, cannot accept fresh deposits, and cannot alienate its assets. Public depositors remain entitled to repayment in line with their deposit contract terms, if any.
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
- 30 Aug 2003
- Effective From
- 30 Aug 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC