Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Oct 2002
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of ICDS Limited on October 9, 2002 under Section 45-IA(6) of the RBI Act, 1934. ICDS Limited, with its registered office in Manipal, Karnataka, is therefore no longer permitted to transact the business of a non-banking financial institution as defined under Section 45I(a). The release also records earlier prohibitions dated August 14, 2002 on accepting deposits and on alienating assets without prior RBI permission. The company must still repay public deposits in accordance with the terms of the deposit contracts.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to ICDS Limited on October 9, 2002 under Section 45-IA(6) of the RBI Act, 1934. As a result, ICDS Limited cannot transact the business of a non-banking financial institution under Section 45I(a). The release also notes that the company had earlier been prohibited on August 14, 2002 from accepting deposits under Section 45MB(1) and from alienating assets under Section 45MB(2) without prior permission of RBI. The company remains obligated to repay public deposits according to the terms and conditions of the deposit contracts.
Operating Impact
ICDS Limited is barred from conducting NBFC business following cancellation of its registration. It must continue repaying existing public deposits as contractually due, and it cannot accept deposits or transfer assets without prior RBI permission.
Regulatory Basis
- Section 45 IA (6) of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 I of the RBI Act, 1934
- Section 45MB(1)
- Section 45 MB(2)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 9 Oct 2002
- Effective From
- 9 Oct 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC