Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Mar 2003
Case Brief
The Reserve Bank of India cancelled the certificate of registration granted to Yashaswi Limited on March 21, 2003, for carrying on the business of a non-banking financial institution, invoking Section 45IA of the RBI Act, 1934. As a consequence, the company cannot transact NBFC business, and RBI also prohibited it from accepting deposits and from alienating its assets under Section 45MB. The company remains obligated to repay public deposits according to the terms of the deposit contracts.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Yashaswi Limited on March 21, 2003, under Section 45IA of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Consequent to the cancellation, RBI also prohibited the company from accepting deposits under Section 45MB(1) and from alienating its assets under Section 45MB(2).
Operating Impact
Yashaswi Limited must stop carrying on NBFC business and cannot accept new deposits or dispose of assets. It must continue repaying existing public deposits in line with contractual terms, and depositors are affected only to the extent of repayment under those contracts.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1) of this Act
- Section 45MB (2) of this Act
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 21 Mar 2003
- Effective From
- 21 Mar 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC