Case Brief
What Happened
RBI, acting under Section 45-IA(6) of the Reserve Bank of India Act, 1934, cancelled the Certificate of Registration of 36 NBFCs listed in the release. The affected entities include firms based in Punjab, Chandigarh, Himachal Pradesh, Odisha, and Andhra Pradesh. The release further states that these companies shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Jalandhar, 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 (CoR) of 36 named companies. The release states that, as a consequence, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of CoR is a license cancellation, which is severity 5 regardless of any other considerations.
Impact
All 36 named companies lose their RBI registration and must stop carrying on NBFC business. Customers, borrowers, and counterparties dealing with these entities are impacted because the firms are no longer permitted to operate as non-banking financial institutions. The restriction is immediate as stated by the cancellation dates in the table.
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
- Shind Finance & Hire Purchase LimitedNBFC · Bulk Member
Published as Shind Finance & Hire Purchase Limited
- Zamindara Investment & Consultancy Private LimitedNBFC · Bulk Member
Published as Zamindara Investment & Consultancy Private Limited
- Aradhana Trade Links LimitedNBFC · Bulk Member
Published as Aradhana Trade Links Limited
- Blue Peaks Deposits & Advances LimitedNBFC · Bulk Member
Published as Blue Peaks Deposits & Advances Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.