RBI cancels Certificate of Registration
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of the NBFCs covered by this release under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release says the cancellation was made on supervisory grounds. No specific entity names are visible in the provided text segment.
The Reserve Bank of India cancelled the certificate of registration of the following non-banking financial companies (NBFCs) in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states the action was taken on supervisory grounds.
Severity Assessment
Cancellation of a Certificate of Registration is a complete licence cancellation, which is severity 5.
The affected NBFCs can no longer operate as registered NBFCs. Any ongoing lending or financial intermediation activity must cease unless permitted under some other lawful framework, and counterparties should treat the registration status as cancelled.
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