Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Mar 2004
Case Brief
The Reserve Bank of India cancelled, as surrendered on February 26, 2004, the certificate of registration issued to IIT Capital Services Limited, Mumbai, for carrying on the business of a non-banking financial institution. With the cancellation, the company can no longer transact NBFC business. RBI also prohibited the company from accepting deposits, and noted that existing public deposits must be repaid from an escrow account in accordance with the terms of the deposit contract. The release cites Section 45IA(6) of the RBI Act, 1934 for cancellation of the registration certificate and Section 45MB(1) for the deposit prohibition.
Why RBI Acted
The Reserve Bank of India cancelled, as surrendered on February 26, 2004, the certificate of registration issued to IIT Capital Services Limited for carrying on the business of a non-banking financial institution. As a result, the company cannot transact NBFC business and has also been prohibited from acceptance of deposits. The release cites Section 45IA(6) of the RBI Act, 1934 as the basis for cancellation and Section 45MB(1) for the prohibition on accepting deposits.
Operating Impact
IIT Capital Services Limited must cease NBFC कारोबार/operations and cannot accept new deposits. Existing public deposit obligations remain and must be repaid according to the deposit contract terms from the escrow arrangement. Depositors are affected by the repayment process, but no new deposit-taking or NBFC business may be conducted.
Regulatory Basis
- Section 45IA(6) of the Reserve Bank of India Act, 1934
- Section 45 MB(1) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 26 Feb 2004
- Effective From
- 26 Feb 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC