Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Nov 2004
Case Brief
The Reserve Bank of India cancelled the certificate of registration of Ju Ju Finance & Leasing Ltd. on October 25, 2004 under Section 45IA of the RBI Act, 1934. As a result, the company can no longer carry on the business of a non-banking financial institution. RBI also prohibited the company from accepting deposits and from alienating its assets under Section 45MB. The company must still repay public deposits according to the contract terms.
Why RBI Acted
On October 25, 2004, RBI cancelled the certificate of registration granted to Ju Ju Finance & Leasing Ltd. under Section 45IA of the RBI Act, 1934. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution. It was additionally prohibited under Section 45MB(1) from accepting deposits and under Section 45MB(2) from alienating its assets. The company remains obligated to repay public deposits as per the terms and conditions of the deposit contract.
Operating Impact
Ju Ju Finance & Leasing Ltd. must stop operating as a non-banking financial institution, cannot accept fresh deposits, and cannot alienate assets. Public depositors retain the right to repayment under the terms of their deposit contracts.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1) of this Act
- Section 45MB (2) of this Act
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Oct 2004
- Effective From
- 25 Oct 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC