Registration of 3 Ludhiana-based non-banking finance companies cancelled by RBI

Ludhiana: 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 have asked the District Administration as well as Police to keep a close watch on the activities of these companies so that they do no misuse the name of RBI and give attractive advertisements luring public of 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 Mr Pradeep Kumar Agrawal informed that the registration of Ludhiana-based Ekjot Advances Ltd, Adinath Investment and Trading and Stanchart Securities Private Limited have been cancelled under section 45-1A (6) of the RBI Act.

He further said that these companies have been intimated that if they continued their operations as Non-Banking Finance Companies, then strict legal action under section 45-1A (Section A) of 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.