The Reserve Bank of India, has on July 25, 2005 cancelled the certificate of registration granted to Daffordils Finance Limited, having its registered office at Jain Street, Seohara, Bijnor District, Uttar Pradesh, for carrying on the business of a non-banking financial institution.

Following cancellation of registration certificate, Daffordils Finance 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 (6) 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.