RBI directs Sahara to repay deposits by 2015

The RBI has asked the Sahara India Financial Corp Ltd (SIFCL) to repay all deposits by 2015 and stop accepting any fresh deposits maturing beyond June 30, 2011. Sahara is one of India's biggest financial institutions with a customer base of 42.5 million.

Earlier, the RBI had barred Sahara from accepting any funds. The ban was due to the alleged violation of rules including failing to pay minimum interest rates. The RBI relented later after SIFCL authorities presented their case before the central bank.