What are the circumstances under which the Reserve Bank of India may cancel a certificate of registration granted to a non-banking financial company under the Reserve Bank of India Act, 1934?
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2021
What are the circumstances under which the Reserve Bank of India may cancel a certificate of registration granted to a non-banking financial company under the Reserve Bank of India Act, 1934?
Answer & Explanation:
The Reserve Bank of India may cancel a certificate of registration granted to a non-banking financial company under Section 45-IA of the Reserve Bank of India Act, 1934, if such company— ceases to carry on the business of a non-banking financial institution in India; or has failed to comply with any condition subject to which the certificate of registration had been issued to it; or at any time fails to fulfil any of the conditions such as adequate capital structure and earning prospects; public interest, monetary stability, and economic growth etc. or fails to comply with any direction issued by the Reserve Bank of India under the provisions of Chapter III B of RBI Act; or fails to maintain accounts in accordance with the requirements of any law or any direction or order issued by the Reserve Bank of India under the provisions of Chapter III B of RBI Act; or fails to submit or offer for inspection its books of account and other relevant documents when so demanded by an inspecting authority of the Reserve Bank of India; or has been prohibited from accepting deposit by an order made by the Reserve Bank of India under the provisions of Chapter III B of RBI Act and such order has been in force for a period of not less than three months.
Topics: Reserve Bank of India Act, 1934
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