Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Sept 2004
Case Brief
On August 19, 2004, the Reserve Bank of India cancelled the Certificate of Registration of Dani Finlease Limited, Mumbai, for carrying on the business of a non-banking financial institution. As a result, the company cannot carry on NBFC business. RBI further prohibited it from accepting deposits and from alienating assets under Sections 45MB(1) and 45MB(2) of the RBI Act, 1934, while it remains obliged to repay public deposits according to the terms of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Dani Finlease Limited, Mumbai, for carrying on the business of a non-banking financial institution under Section 45IA of the RBI Act, 1934. Consequent to the cancellation, the company cannot transact NBFC business. RBI also invoked powers under Section 45MB(1) and 45MB(2) to prohibit the company from accepting deposits and from alienating its assets, while requiring it to repay public deposits as per the contractual terms.
Operating Impact
Dani Finlease Limited must stop NBFC कारोबार immediately and cannot accept fresh deposits or dispose of assets. Public depositors are still to be repaid under the existing contractual terms, and the company faces a complete loss of registration-based operating authority.
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
- 19 Aug 2004
- Effective From
- 19 Aug 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC