Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 28 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each company by name and office address, and states that they shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- 27 Jun 2018
- Effective From
- 27 Jun 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 28 non-banking financial companies listed in the release. The order states that the above 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 Certificates of Registration is a license cancellation, which is severity 5 regardless of monetary amount.
Impact
All 28 listed companies lose their RBI registration to operate as NBFCs and must stop transacting NBFC business. This affects the companies directly and prevents them from carrying on non-banking financial institution activities going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 27 Jun 2018
Affected Entities
- M/s Hindustan Products LimitedNBFC · Bulk Member
Published as M/s Hindustan Products Limited
- M/s P.D. Commercials Private LimitedNBFC · Bulk Member
Published as M/s P.D. Commercials Private Limited
- M/s Vasundhara Leasing Private LimitedNBFC · Bulk Member
Published as M/s Vasundhara Leasing Private Limited
- M/s Chirawa Investment LtdNBFC · Bulk Member
Published as M/s Chirawa Investment Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.