Case Brief
What Happened
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificates of Registration of 25 NBFCs named in the release. The order covers entities such as ABS Leasing & Financing (India) Limited, Akal Finlease Limited, Allepy Investment & Trading Co. Pvt. Ltd., and others listed in the notification. The cancellation means these companies are no longer permitted to transact the business of a Non-Banking Financial Institution under the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Rupnagar, Punjab
- Order Date
- Unknown date
- Effective From
- 30 May 2018
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 25 named companies. As a result, the companies shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of a Certificate of Registration is a license cancellation, which is severity 5 regardless of any monetary penalty.
Impact
All 25 entities are prohibited from conducting NBFC business going forward. Customers, counterparties, and lenders dealing with these companies must recognize that the entities no longer hold valid RBI registration to operate as NBFCs, effective from the stated cancellation date of May 30, 2018.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 30 May 2018
Affected Entities
- Akal Finlease LimitedNBFC · Bulk Member
Published as Akal Finlease Limited
- Amarjit Finance LimitedNBFC · Bulk Member
Published as Amarjit Finance Limited
- Berkeley Finance LtdNBFC · Bulk Member
Published as Berkeley Finance Ltd.
- Consolidated Dealers LimitedNBFC · Bulk Member
Published as Consolidated Dealers Limited
- Ess Dee Hire Purchase Limited
Published as Ess Dee Hire Purchase Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.