Case Brief
The Reserve Bank of India, acting under Sections 45MB(1) and 45MB(2) of the RBI Act, 1934, ordered Money Masters Leasing & Finance Limited to stop accepting public deposits with immediate effect. The order covers both fresh deposits and renewals, and also prohibits the company from selling, transferring, creating charge or mortgage over, or otherwise dealing with its property and assets without prior permission for 180 days. RBI said the action followed inspection findings that the company had violated extant directions on deposit acceptance, and it was imposed to protect depositors’ interests and in public interest. The company may continue other lawful business activities, but must comply with all applicable RBI requirements until all deposits are repaid with interest in full.
Action Snapshot
- Primary Impact
- Business restriction
- Entity Type
- NBFC
- Location