The Reserve Bank of India (RBI) has initiated insolvency proceeding against .

The central bank filed an application for the initiation of Corporate Insolvency Resolution Process (CIRP) against Reliance Capital Ltd. under the Insolvency and Bankruptcy Code, 2016.

On November 29, RBI superseded the board of RCL and appointed former Bank of Maharashtra executive director Y Nageswar Rao as an administrator of the company.

The action by the central bank was taken “in view of the defaults by RCL in meeting the various payment obligations to its creditors and serious governance concerns which the board has not been able to address effectively,” RBI said in a press release.

RCL is the holding company for majority stakes held in insurance firms, an asset reconstruction company, a brokerage firm and a partial stake in a commodity exchange.

It controls a 100% stake in Reliance General Insurance, its broking arm Reliance Securities and RBI-registered NBFC Reliance Financial Limited which is engaged in capital market-linked financing activities.

Also a 51% stake in Reliance Nippon Life Insurance and a 49% stake in Reliance Asset Reconstruction Ltd and a 20% stake in Indian Commodity Exchange, a commodity derivatives exchange.

RCL owes its creditors Rs 19,805 crore, a majority of it through bonds under the trustee Vistra ITCL India Ltd.

This is the second NBFC taken to the bankruptcy court by the RBI within two months. Last month the central bank had allowed proceedings against Kolkata based Srei Group.