Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Feb 2003
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of IndusInd Leasing Ltd., Chandigarh, under Section 45-IA of the RBI Act, 1934, on February 8, 2003. As a result, the company cannot conduct non-banking financial institution business. RBI also prohibited the company from accepting deposits under Section 45MB(1) and from alienating assets under Section 45MB(2). The company must still repay public deposits as per the terms and conditions of the deposit contract.
Why RBI Acted
Under Section 45-IA of the RBI Act, 1934, RBI cancelled the Certificate of Registration issued to IndusInd Leasing Ltd. for carrying on the business of a Non-Banking Financial Institution, with effect from February 8, 2003. The company was consequently barred from transacting NBFC business and was also prohibited under Sections 45MB(1) and 45MB(2) from accepting deposits and alienating assets. It remained obligated to repay public deposits according to the contract terms.
Operating Impact
IndusInd Leasing Ltd. must stop carrying on NBFC business and comply with the prohibitions on accepting deposits and alienating assets. Public depositors remain entitled to repayment in accordance with their deposit contracts.
Regulatory Basis
- 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
- 8 Feb 2003
- Effective From
- 8 Feb 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC