Reserve Bank Cancels Certificate of Registration of two companies

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The companies named in the release are M/s. New Theatres Pvt. Ltd. and M/s. Graphic Finance Ltd., both in Kolkata. RBI states that the cancellations were made because the companies had opted to exit the business of a Non-Banking Financial Institution. Following cancellation, the companies cannot carry on the business of a non-banking financial institution, though they remain obligated to repay any deposits as per the relevant contractual terms.