SIFCL has been banned by the RBI from taking depositsSahara India Financial Corporation (SIFCL) which us known as the largest deposit-taking non-banking finance company in the country has been banned by the banking regulator Reserve Bank of India(RBI)
04 Jun 2008
Sahara India Financial Corporation (SIFCL), among the largest deposit-taking non-banking finance company in India has been banned by the banking regulator Reserve Bank of India (RBI) to take deposits with immediate effect.
The company has been told to repay all the deposits as and they get mature. SIFCL which is a part of Sahara group has been found guilty of breaching various regulatory norms.
As per RBI the violation by the company, it includes non-payment of minimum rate of interest prescribed for RNBCs (residuary non-banking company), 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.
At present, SIFCL, a residuary NBFC, has a gigantic deposit base of close to Rs 18,000 crore.