RBI cancels Certificate of Registration of 3 NBFCs
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies: M/s Barkha Financiers Limited, M/s Barkha Instalments Limited, and M/s Prachi Chemical and Industries Limited. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies are no longer permitted to transact the business of a non-banking financial institution under Section 45-IA(a).
The RBI cancelled the Certificate of Registration of three non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release lists M/s Barkha Financiers Limited, M/s Barkha Instalments Limited, and M/s Prachi Chemical and Industries Limited, and states that following cancellation of the registration certificate, these companies cannot transact the business of a non-banking financial institution under Section 45-IA(a).
Severity Assessment
Cancellation of Certificate of Registration is a full licence cancellation, which carries severity 5 regardless of any monetary amount.
These three companies are barred from conducting NBFC business going forward. Customers and counterparties should expect that the entities cannot legally operate as non-banking financial institutions after the cancellation dates.
Published as M/s Barkha Instalments Limited
Published as M/s Barkha Financiers Limited
Published as M/s Prachi Chemical and Industries Limited
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