RBI cancels Certificate of Registration of NBFCs
Case Brief
The Reserve Bank of India has cancelled the Certificate of Registration of a non-banking financial company under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The text provided does not name the NBFC or specify any additional conduct particulars beyond the cancellation itself.
The Reserve Bank of India cancelled the certificate of registration of the following non-banking financial company (NBFC) in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release does not provide the entity name or additional factual grounds beyond the statutory cancellation.
Severity Assessment
Cancellation of an NBFC's Certificate of Registration is a complete licensing action and falls in severity 5.
The affected NBFC can no longer operate as a registered NBFC. Any ongoing lending/financial activities that depended on the registration would have to stop or be wound down in accordance with applicable law and RBI requirements.
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