Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Feb 2004
Case Brief
The Reserve Bank of India, on February 6, 2004, cancelled the certificate of registration granted to Syal Finlease Limited, whose registered office was stated as 10, Netaji Market, G.T. Road, Panipat, Haryana, for carrying on the business of a non-banking financial institution. The release says that after cancellation, the company cannot transact the business of a non-banking financial institution. It also notes separate prohibitions on acceptance of deposits and alienation of assets under Section 45MB of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Syal Finlease Limited under Section 45IA of the RBI Act, 1934. The release also states that, following cancellation, the company cannot transact the business of a non-banking financial institution and has been prohibited under Section 45MB(1) from accepting deposits and under Section 45MB(2) from alienating its assets.
Operating Impact
Syal Finlease Limited can no longer operate as a non-banking financial institution. It must stop accepting deposits and cannot alienate assets, though it remains obligated to repay public deposits according to the terms of the deposit contract.
Regulatory Basis
- Section 45IA 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
- 6 Feb 2004
- Effective From
- 6 Feb 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC