Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Saturday, 2 September 2023 01:23 - - {{hitsCtrl.values.hits}}
The Central Bank yesterday announced that the Monetary Board decided to cancel the licence issued to Bimputh Finance PLC (BFP), under the Finance Business Act, No. 42 of 2011 (FBA) with effect from 1 September 2023.
Accordingly, BFP is not permitted to engage in finance business under the FBA with effect from 1 September 2023.
“BFP, a licensed finance company under the Finance Business Act, No. 42 of 2011 (FBA) has continuously been violating/contravening provisions of the FBA, several general directions and rules that have been issued with the view to achieve the overall objective of financial system stability and also specific directions issued to BFP in order to address the critical financial position of the company. As a result, the financial condition of BFP had been deteriorating due to deficient capital level, poor asset quality and continuous losses,” the Central Bank said.
Despite several time extensions granted to BFP by the Monetary Board of the Central Bank of Sri Lanka (Monetary Board) to comply with the provisions of the FBA, directions and rules issued there under, and adhere to the Master plan for Consolidation of Non-Bank Financial Institutions (the Master plan), BFP has made no satisfactory progress in reviving its critical condition.
“Largely complying with the Monetary Board directions issued, BFP managed to repay a major portion of its deposit liabilities during 2022 and Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) will initiate necessary actions to pay compensation to the unclaimed depositors of BFP, up to a maximum of Rs. 1,100,000/- per depositor as per the regulations of the SLDILSS,” the Central Bank said.
Accordingly, all eligible depositors of BFP will be able to recover their deposits in full through SLDILSS upon submitting due claims within two years from the date of cancellation of the licence or before the appointment of the liquidator by competent court, whichever occurs earlier as per the regulation of SLDILSS.
Further, all debtors of BFP are advised to repay their dues to BFP on time, only through a bank account under the name of BFP and maintain records for all such payments.
