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Our Bureau

Mumbai, Sept. 12 Sahara India Investment Corporation Ltd has voluntarily exited the non-banking financial business, a press release issued by the Reserve Bank of India said.

Consequent to this, the Reserve Bank of India had cancelled the certificate of registration given to the company on August 11.

As a result, the company, a part of the Sahara group, would no longer function as an NBFC.

Sahara India Investment is distinct from Sahara India Financial Corporation Ltd(SIFCL). The former was a non deposit taking NBFC before it surrendered its licence, while SIFCL is a residuary non-banking company (RNBC), which was barred by the RBI on June 4 this year from accepting public deposits.

The RBI had directed SIFCL to repay its depositors on maturity of their deposits. It had also asked the company to bring down its aggregate liability to depositors to zero by June 30, 2015. The company had a huge deposit base of close to Rs 18,000 crore at the time of the RBI Order.

SIFCL was found guilty of violating various regulatory norms. These violations included non-payment of minimum rate of interest prescribed for RNBCs, non-maintenance of stipulated asset-liability match, violation of Know Your Customer norms for opening deposit accounts, not informing depositors in time about the maturity of their deposits, and non-repayment of deposits on maturity.

“The Management has decided to carry out real estate business in the said Company,” said a statement from Sahara India Investment Corporation.

More Stories on : NBFCs | RBI & Other Central Banks

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