Reserve Bank Cancels Certificate of Registration of UP Instalments Limited, Bareilly - RBI - Reserve Bank of India
Reserve Bank Cancels Certificate of Registration of UP Instalments Limited, Bareilly
The Reserve Bank of India, has on March 18, 2004 cancelled the certificate of registration granted to UP Instalments Limited having its registered office 88-C, Civil Lines, Bareilly, Urrar Pradesh for carrying on the business of a non-banking financial institution.
Following cancellation of registration certificate, UP Instalments 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.
However, the company is under an obligation to repay public deposits as per the terms of conditions of the contract of deposit, if any.
Under powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of non-banking financial company. Under Section 45MB (1) of this Act, the Reserve Bank can prohibit non-banking financial company for accepting deposits; and under Section 45MB (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 45IA of the Reserve Bank of India Act, 1934.
P. V. Sadanandan
Manager
Press Release: 2003-2004/1266