The Reserve Bank of India, has on July 4, 2005 cancelled the certificate of registration issued to Ratnanidhi Finsec Private Limited having its registered office at 9-131/8, H. M. T. Nagar, Street No.5, Nacharam, Hyderabad-500 076 (since shifted to) 9-7/1, H.M.T.Nagar, Opposite Hanuman Temple, Main Road, Nacharam, Hyderabad-500 076 for carrying on the business of a non-banking financial institution.

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. The business of a non-banking financial institution is defined in clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934.