Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
25 Mar 2008
Case Brief
The Reserve Bank of India cancelled the certificate of registration of three companies: M/s. Dipco Ltd., Khaitan Estates Pvt. Ltd., and Ratanpura Trading Ltd. The order was issued under Section 45-IA(6) of the RBI Act, 1934. RBI said the companies had opted to exit the business of a non-banking financial institution. Following cancellation, they cannot carry on NBFC business, although they must still repay deposits, if any, according to the contract terms.
Why RBI Acted
Under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank cancelled the certificate of registration of M/s. Dipco Ltd., Khaitan Estates Pvt. Ltd., and Ratanpura Trading Ltd. The release states that these companies had opted to exit from the business of a non-banking financial institution. After cancellation, they cannot transact the business of a non-banking financial institution, though they remain obliged to repay any deposits in accordance with contract terms.
Operating Impact
The three companies are barred from conducting non-banking financial institution business going forward. They must continue fulfilling any deposit-repayment obligations as per the terms of their contracts, and affected depositors retain repayment rights.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 3
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Dipco Ltd