The Reserve Bank of India, has on June 25, 2005 cancelled the certificate of registration granted to Automobile and General Finance Company Limited, Agra, having its registered office at AGF House, 2nd Floor, Nehru Nagar, Agra-282 002 for carrying on the business of a non-banking financial institution.

Following cancellation of registration certificate, Automobile and General Finance Company Limited, cannot transact the business of a non-banking financial institution. The company has also been prohibited from acceptance of deposits and alienation of assets.

Under powers conferred by Section 45-IA of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of non-banking financial company. Under Section 45-MB (1) of this Act, the Reserve Bank can prohibit non-banking financial company from accepting deposits; and under Section 45-MB (2), it can prohibit the company from alienating its assets. The business of a non-banking financial institutions is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.