Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jan 2003
Case Brief
The Reserve Bank of India exercised its powers under Section 45-IA of the RBI Act, 1934, to cancel the Certificate of Registration issued to Sran Finvest Private Limited, Moga, on January 17, 2003. As a result, the company cannot carry on the business of a non-banking financial institution. RBI also prohibited it from accepting deposits under Section 45MB(1) and from alienating assets under Section 45MB(2). The company must still repay public deposits in accordance with the terms and conditions of the deposit contract.
Why RBI Acted
The Reserve Bank of India cancelled, on January 17, 2003, the Certificate of Registration issued to Sran Finvest Private Limited under Section 45-IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Under the same order, the company was prohibited under Section 45MB(1) from accepting deposits and under Section 45MB(2) from alienating its assets. It remains obligated to repay public deposits according to the terms and conditions of the deposit contract.
Operating Impact
Sran Finvest Private Limited can no longer conduct NBFC business. It must stop accepting deposits and cannot transfer or dispose of assets, while remaining responsible for repaying existing public deposits as contractually due. Affected parties include depositors and counterparties dealing with the company’s assets or liabilities.
Regulatory Basis
- Section 45 IA of the Reserve Bank of India Act, 1934
- Section 45MB(1) of the Reserve Bank of India Act, 1934
- Section 45MB(2) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 17 Jan 2003
- Effective From
- 17 Jan 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC