Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Mar 2003
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Team Finance Company Ltd. on March 12, 2003 under Section 45-IA of the RBI Act, 1934. This means the company can no longer carry on the business of a non-banking financial institution. RBI also prohibited the company from accepting deposits and from alienating assets under Sections 45MB(1) and 45MB(2), while noting that it must still repay existing public deposits according to the contract terms.
Why RBI Acted
The Reserve Bank of India cancelled, on March 12, 2003, the Certificate of Registration issued to Team Finance Company Ltd. under Section 45-IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. As a consequence, the company cannot transact the business of a non-banking financial institution as defined in Section 45-IA(a). The release also states that the company is prohibited from acceptance of deposits under Section 45MB(1) and from alienation of assets under Section 45MB(2).
Operating Impact
Team Finance Company Ltd. must stop operating as a non-banking financial institution and cannot accept fresh deposits or transfer assets. Public depositors are still entitled to repayment as per their contractual terms, so the company remains obligated to service existing deposit liabilities.
Regulatory Basis
- Section 45 IA of the Reserve Bank of India Act, 1934
- Clause (a) of 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
- 12 Mar 2003
- Effective From
- 12 Mar 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC