RBI cancels registration of three finance firms

Tribune News Service

Ludhiana, February 13

The Reserve Bank of India (RBI) has cancelled the registration of Ludhiana-based three non-banking finance companies. The RBI has also banned these companies from taking any deposits and has asked the District Administration as well as the police to keep a close watch on the activities of these companies so that these do not misuse the name of RBI and give attractive advertisements luring public with exorbitantly higher returns and then dupe them of their money.

While giving reference of the letter received from the Directorate of Institutional Finance and Banking, Deputy Commissioner Pradeep Kumar Agrawal said 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 said these companies had been 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.