LUDHIANA: The Reserve Bank of India (RBI) has cancelled the registration of three city-based non-banking finance companies, and banned them from taking any deposits. It has also asked the district administration as well as police to keep a close watch on their activities, so that they do not misuse RBI’s name and give attractive advertisements, luring the public of exorbitantly higher returns, before duping them of their money.
Giving the reference of a letter received from the Directorate of Institutional Finance and Banking, deputy commissioner Pradeep Kumar Agrawal informed that the registration of Ludhiana-based Ekjot Advances Ltd, Adinath Investment and Trading, and Stanchart Securities Private Limited had been cancelled under Section 45-1A (6) of the RBI Act.
He further said these companies were intimated that if they continued their operations as non-banking finance companies, then strict legal action under Section 45-1A (Section A) of the RBI Act would be initiated against them. He has also directed the police to keep a close tab on the activities of other approved non-banking finance companies as well.
Source- Times of India.