Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Aug 2002
Case Brief
The Reserve Bank of India cancelled the certificate of registration of Trans India Financial Services Limited under Section 45 IA(6) of the RBI Act, 1934. The order means the company cannot continue business as a non-banking financial institution. RBI also prohibited the company from accepting deposits and from alienating assets under Sections 45MB(1) and 45MB(2), respectively, though it remains obligated to repay public deposits as per the deposit contract terms.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Trans India Financial Services Limited on August 13, 2002 under Section 45 IA(6) of the RBI Act, 1934. As a result, the company can no longer transact the business of a non-banking financial institution. The release further states that the company is prohibited from acceptance of deposits under Section 45MB(1) and from alienation of assets under Section 45MB(2), while remaining obligated to repay public deposits according to the contract terms.
Operating Impact
The company must cease NBFC operations and cannot accept fresh deposits or transfer/alienate assets. Public depositors remain entitled to repayment according to the contractual terms of their deposits.
Regulatory Basis
- Section 45 IA(6) of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 I 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
- 13 Aug 2002
- Effective From
- 13 Aug 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC