Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Feb 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Cheyyar Sri Vasavi Benefit Fund Limited, Chennai, on February 7, 2005, 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 and from alienating its assets under Section 45MB, while clarifying that the company must still repay public deposits in line with the deposit contract, if any.
Why RBI Acted
On February 7, 2005, the Reserve Bank of India cancelled the Certificate of Registration granted to Cheyyar Sri Vasavi Benefit Fund Limited under Section 45IA of the RBI Act, 1934 for carrying on NBFC business. Consequent to the cancellation, the company was prohibited under Section 45MB from accepting deposits and from alienating its assets. It remains obliged to repay public deposits, if any, according to the terms of the deposit contract.
Operating Impact
Cheyyar Sri Vasavi Benefit Fund Limited can no longer conduct NBFC business, accept fresh deposits, or dispose of assets. Existing public deposit obligations remain, and repayment must continue as per the contract terms. The action directly affects the company and its depositors/counterparties.
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
- 7 Feb 2005
- Effective From
- 7 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC