Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Dec 2003
Case Brief
The Reserve Bank of India, on November 28, 2003, cancelled the Certificate of Registration granted to Crystal Capital Corporation Limited, Aliganj, Lucknow, under Section 45IA of the RBI Act, 1934. The release states that the company was registered for carrying on the business of a non-banking financial institution and that, following cancellation, it cannot transact NBFC business. The company remains under an obligation to repay public deposits in accordance with the terms and conditions of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Crystal Capital Corporation Limited under Section 45IA of the RBI Act, 1934. The cancellation was for carrying on the business of a non-banking financial institution, and the release states that after cancellation the company cannot transact NBFC business. It also notes that the company remains obligated to repay public deposits according to the terms and conditions of the deposit contract.
Operating Impact
Crystal Capital Corporation Limited is barred from conducting non-banking financial institution business from the cancellation date. Depositors are still entitled to repayment as per their deposit contracts, and the company must continue to honour those repayment obligations.
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
- 28 Nov 2003
- Effective From
- 28 Nov 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC