RBI Cancels registration certificate of IIT Capital Services Ltd. as `surrendered'

Case Brief

The Reserve Bank of India cancelled, as surrendered on February 26, 2004, the certificate of registration issued to IIT Capital Services Limited, Mumbai, for carrying on the business of a non-banking financial institution. With the cancellation, the company can no longer transact NBFC business. RBI also prohibited the company from accepting deposits, and noted that existing public deposits must be repaid from an escrow account in accordance with the terms of the deposit contract. The release cites Section 45IA(6) of the RBI Act, 1934 for cancellation of the registration certificate and Section 45MB(1) for the deposit prohibition.