Case Brief
What Happened
The Reserve Bank of India, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs named in the press release. The companies span locations including Kolkata, Hyderabad, Jammu, Thrissur, Punjab, Telangana, Kerala and Palakkad, with the release listing their office addresses and cancellation order dates. Following cancellation, the entities cannot transact business as Non-Banking Financial Institutions under Section 45-I(a) of the RBI Act, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- 4 Jul 2018
- Effective From
- 17 May 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 30 named companies. The press 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 a Certificate of Registration is a license cancellation, which is a severity 5 action.
Impact
All 30 affected companies lose their registration as NBFCs and must stop carrying on NBFC business. Customers, borrowers, and counterparties should no longer treat them as registered non-banking financial institutions; the restriction applies immediately from the stated cancellation order dates.
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
- 17 May 2018
Affected Entities
- Kamdhenu Lefins Pvt. LtdNBFC · Bulk Member
Published as Kamdhenu Lefins Pvt. Ltd
- Abhiyan Holdings Private LimitedNBFC · Bulk Member
Published as Abhiyan Holdings Private Limited
- Kshitish Trading Co. LtdNBFC · Bulk Member
Published as Kshitish Trading Co. Ltd.
- Ceekay Securities & Financial Services Pvt. LtdNBFC · Bulk Member
Published as Ceekay Securities & Financial Services Pvt. Ltd
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.