Sahara shuts SIICL; to continue with para-banking sector

Lucknow, Sep 12 (UNI) Sahara India today denied withdrawing from the para-banking sector after receiving of Reserve Bank of India's(RBI) approval for voluntarily exit of the Sahara India Investment Corporation Ltd (SIICL) from non-banking financial business.

'' We have exited from the SIICL, but our para-banking company Sahara India Financial Corporation Ltd (SIFCL) still functioning'', said Sahara India Corporate Communications Head Abhijit Sarkar today.

The RBI press release was related to Sahara India Investment Corporation Ltd and not to Sahara India Financial Corporation Ltd, the company said in a statement.

'' SIICL is a non-depository company and does not involve public money. Besides, it is not in the business of para-banking'', the statement said.

Claiming that the Sahara had voluntarily surrendered its licence because it is shifting to other sectors, the company officials maintained that the SIFCL will continue to do its business of para-banking and there was nothing to fear for the policy holders.

SIFCL has about 3.94 crore policy holders in the country.

Earlier, RBI in a release said on August 11, it has cancelled Sahara India Investment Corporation Ltd registeration certificate for carrying on the business of a non-banking financial institution in terms of Section 45-IA (6) of the Reserve Bank of India Act, 1934.

SIICL, which is one of the group companies belonging to Sahara Group, as such cannot transact the business of a non-banking financial institution as defined in clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934, the release said.

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