Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 26 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The order lists the affected companies and states that they shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- 1 Jun 2018
- Effective From
- 1 Jun 2018
- Entities Affected
- 26
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled the Certificate of Registration of 26 named companies. The release states that, as a result, 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 Certificate of Registration is a license cancellation, which carries severity 5 regardless of the absence of a monetary penalty.
Impact
All 26 named companies lose their CoR and must stop NBFC activity. This prevents them from carrying on non-banking financial institution business going forward; the action affects the companies directly and, indirectly, their customers and counterparties relying on such services.
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
- 1 Jun 2018
Affected Entities
- M/s Bee Tee Credit & Marketing Private LimitedNBFC · Bulk Member
Published as M/s Bee Tee Credit & Marketing Private Limited
- M/s Kar Commercials Private LimitedNBFC · Bulk Member
Published as M/s Kar Commercials Private Limited
- M/s Bakliwal Fintex Pvt. LtdNBFC · Bulk Member
Published as M/s Bakliwal Fintex Pvt. Ltd.
- M/s Samridhi Finance LimitedNBFC · Bulk Member
Published as M/s Samridhi Finance Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.