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The Reserve Bank of India, has on January
13, 2006 cancelled the certificate of registration granted to Pilibhit Finance
Limited, having its registered office at Shop No.A/2, Sandhu Complex, Bye Pass
Road, Pilibhit – 262 001, Uttar Pradesh for carrying on the business of a non-banking
financial institution. Following cancellation of registration certificate, Pilibhit
Finance Limited, cannot transact the business of a non-banking financial institution.
The company has also been prohibited from
accepting public deposits and alienating any of its assets.
Under powers conferred by Section 45-IA
(6) 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 institution
is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.
P.V.Sadanandan
Manager
Press Release: 2005-2006/1003
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