JUDGMENT :

The petitioner is an Association of small financiers and unincorporated bodies registered under the Kerala Money Lenders Act (‘the Act’ for short). The members of the petitioner are issued with licence under the Act which is to be renewed from time to time. Although renewal applications were submitted by many of the members, the authorities refused to renew their license in view of Ext.P1 communication of the Additional Commissioner, State Goods and Services, Tax Department. Ext.P1 refers to the Reserve Bank of India's intimation that it had noticed that some entities registered under the Kerala Money Lenders Act are using the words ‘bankers’ as part of their name and are engaging in acceptance of public deposits, which is a prohibited activity insofar as money lenders registered under the Act are concerned. Further, the use of the words ‘bank, banker, 'banking' and 'banking company' and is prohibited by Section 7 of the Banking Regulation Act, 1949. Based on the RBI instruction, the authorities under the Money Lenders Act are directed that not grant fresh registration or renew existing registration without the applicants dropping the word ‘banker/s’ from the name. Ext.P1