RBI cancels Certificate of Registration
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of the following NBFCs under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The excerpt does not provide the names of the affected companies or any additional factual basis beyond the statutory cancellation.
The release states that the Reserve Bank of India has cancelled the Certificate of Registration of the following non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. No individual company names or further grounds are provided in the text excerpt.
Severity Assessment
Cancellation of a Certificate of Registration is a full licensing action and falls at severity 5.
The affected NBFCs can no longer operate as registered NBFCs. Any ongoing lending or other NBFC activities would have to cease unless otherwise permitted under law, and counterparties and customers may be impacted by the loss of registration.
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