Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Apr 2002
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Ganga General Finance Ltd. on March 26, 2002 under Section 45-IA(6) of the RBI Act, 1934. The cancellation was made after the company requested it, stating that it had decided to stop its non-banking finance business. Following the cancellation, the company cannot carry on the business of a non-banking financial institution and is also prohibited from accepting deposits and from alienating assets under Section 45MB(1) and 45MB(2).
Why RBI Acted
Under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank cancelled the Certificate of Registration dated November 3, 1998 (No. 07.00344) issued to Ganga General Finance Ltd. The release says the cancellation was made in view of the company’s own request, as it had decided to stop its non-banking finance business. As a result, the company cannot transact the business of a non-banking financial institution, and it is also prohibited from accepting deposits and from alienating assets under Section 45MB(1) and 45MB(2).
Operating Impact
The company must cease NBFC operations and cannot accept fresh deposits or dispose of assets as restricted by RBI. This directly affects the company and any existing or prospective depositors/counterparties, with the cancellation effective from March 26, 2002.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- Section 45 IA of the Reserve Bank of India Act, 1934
- Section 45MB(1) of the Reserve Bank of India Act, 1934
- Section 45MB(2) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 26 Mar 2002
- Effective From
- 26 Mar 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC