The petitioner-Corporation is a partnership doing business in conducting chits and finance. The non-banking financial institutions like the petitioner used to accept the deposits from the public. According to the petitioner, the finance business in Tamil Nadu is in vogue from time immemorial. Chapter III B and C of the Reserve Bank of India Act as amended in Ordinance No.2 of 1997 deals with receiving deposits by non-banking financial institutions. The impugned amendment under Act 23 of 1997 has been enacted by amending certain provisions. Aggrieved by the same, the petitioner has filed the above writ petition.

2. The main grievance of the petitioner in this case is that by way of the impugned amendment, the petitioner is prohibited from getting deposits from the public. To appreciate the grievance of the petitioner, it is necessary to appreciate the relevant provisions of the said Act.

3. Chapter III-B of the said Act was introduced for enabling the Reserve Bank of India to obtain returns and informations from non-banking financial institutions accepting deposits from the members of the general public with a view to regulate the business of acceptance of deposits by non