Reserve Bank Cancels Certificate of Registration of New Line Finance Limited, Chennai
Case Brief
On September 20, 2004, the Reserve Bank of India cancelled the Certificate of Registration of New Line Finance Limited, whose registered office was in Egmore, Chennai. The release says the company had opted to exit the business of a non-banking financial institution. Acting under Section 45IA of the RBI Act, 1934, RBI cancelled the registration certificate, and as a result the company cannot transact NBFC business anymore.
The Reserve Bank of India cancelled the Certificate of Registration granted to New Line Finance Limited, Chennai, under Section 45IA of the RBI Act, 1934. The release states that the company opted to exit the business of a non-banking financial institution, and following cancellation it cannot transact the business of a non-banking financial institution. No monetary penalty is mentioned.
Severity Assessment
Cancellation of a Certificate of Registration is a severity-5 licensing action that fully prevents the NBFC from operating in that business.
New Line Finance Limited is barred from carrying on non-banking financial institution business after the cancellation. The immediate operational impact is complete cessation of its NBFC activities; no customer-facing lending or deposit-taking business can continue under that registration. The order is effective from September 20, 2004.
Published as New Line Finance Limited
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