The Reserve Bank of India, has on September 14, 2005 cancelled the certificate of registration granted to Pondicherry Nidhi Limited, having its registered office at 189, Mission Street, Pondichery-605001 for carrying on the business of a non-banking financial institution.

Following cancellation of registration certificate, Pondicherry Nidhi Limited cannot transact the business of a non-banking financial institution..

Under powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of non-banking financial company. The business of a non-banking financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.