Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Jan 2002
Case Brief
On January 14, 2002, the Reserve Bank of India cancelled the certificate of registration of Ram Mohan Financial Services Ltd. under Section 45 IA(6) of the RBI Act, 1934. This means the company cannot operate as a non-banking financial institution. The release also states that the company is prohibited from accepting deposits under Section 45MB(1) and from alienating assets under Section 45MB(2) without prior RBI permission.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Ram Mohan Financial Services Ltd. under Section 45 IA(6) of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution as defined under Section 45 IA(a). It has also been prohibited under Section 45MB(1) from accepting deposits and under Section 45MB(2) from alienating assets without the prior permission of the Reserve Bank.
Operating Impact
Ram Mohan Financial Services Ltd. must stop carrying on NBFC business. It cannot accept deposits or transfer/alienate assets unless it first obtains RBI permission, affecting the company and its depositors/counterparties.
Regulatory Basis
- Section 45 IA(6) of the Reserve Bank of India Act, 1934
- Section 45 IA of the Reserve Bank of India Act, 1934
- Section 45MB(1)
- Section 45MB(2)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 14 Jan 2002
- Effective From
- 14 Jan 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC