Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Apr 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Nicco Uco Alliance Credit Ltd., Kolkata, 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. The release also states that it is prohibited from accepting deposits and from alienating assets, though it remains obligated to repay public deposits in line with the terms of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Nicco Uco Alliance Credit Ltd. on March 31, 2005 under Section 45IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Consequent to the cancellation, the company cannot transact NBFC business and has been prohibited from acceptance of deposits and from alienation of assets, while remaining obliged to repay public deposits according to the contract terms.
Operating Impact
Nicco Uco Alliance Credit Ltd. must stop NBFC कारोबार/business activity and cannot accept fresh deposits or transfer assets. Public depositors remain entitled to repayment as per contract terms, but the company’s operational flexibility is materially curtailed.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 31 Mar 2005
- Effective From
- 31 Mar 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC