Recorded RBI impact
Directive prohibition
Directive prohibition · Fresh imposition
Published by RBI
19 Jan 2005
Case Brief
The Reserve Bank of India issued prohibitory orders against M/s. Integrated Finance Company Limited, Chennai, under Section 45MB(1) and (2) of the RBI Act, 1934. The company was barred from accepting any deposits from any person, whether fresh deposits or renewals of existing deposits, until further orders. RBI further prohibited the company from selling, transferring, creating a charge or mortgage on, or otherwise dealing with, its properties and assets without prior written permission.
Why RBI Acted
The Reserve Bank of India prohibited M/s. Integrated Finance Company Limited, Chennai, from accepting any deposits from any person in any form, including fresh deposits and renewal of existing deposits, until further orders. RBI also prohibited the company, in public interest, from selling, transferring, creating a charge or mortgage on, or otherwise dealing with, its properties and assets without prior written permission. The orders were issued under Section 45MB(1) and (2) of the Reserve Bank of India Act, 1934.
Operating Impact
The company cannot raise public deposits or renew existing deposits until RBI lifts the order. It also cannot dispose of or encumber its assets without prior written approval, limiting its liquidity and operational flexibility.
Regulatory Basis
- Section 45MB (1) and (2) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Directive prohibition
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Integrated Finance Co. Ltd