Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Jul 2004
Case Brief
On June 25, 2004, the Reserve Bank of India cancelled the Certificate of Registration of Mangal Pradeep Financial & Investment (India) Ltd., Bhubaneswar, which had been issued for carrying on the business of a non-banking financial institution. The action was taken under Section 45IA of the RBI Act, 1934. The release also notes that the company remains obliged to repay public deposits in accordance with the terms and conditions of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Mangal Pradeep Financial & Investment (India) Ltd. under Section 45IA of the RBI Act, 1934, which authorises RBI to cancel the registration certificate of an NBFC/non-banking financial institution. The release does not specify any separate misconduct beyond the regulatory cancellation of the company’s registration to carry on NBFC business.
Operating Impact
The company can no longer carry on NBFC business under its RBI registration. However, it must continue to repay public deposits according to the contractual terms, so depositors remain entitled to repayment as per those conditions.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Jun 2004
- Effective From
- 25 Jun 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC