Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 30 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities include companies such as Exken Finance Private Limited, Mandhana Finlease Private Limited, and others across Mumbai, Pune, Nagpur, Thane, Ahmednagar, and Navi Mumbai. Following the cancellation, these companies are prohibited from transacting 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
- Mumbai, Maharashtra
- Order Date
- 3 Jul 2018
- Effective From
- 3 Jul 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 30 listed companies. The release states that, as a result, the above 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 licence cancellation, which is a severity-5 action affecting the affected companies' ability to operate as NBFCs.
Impact
The 30 named companies must stop carrying on NBFC business. This affects their ability to lend, finance, or otherwise operate as registered non-banking financial institutions, and may impact counterparties and customers relying on those services. No penalty amount is stated.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 3 Jul 2018
Affected Entities
- Mandhana Finlease Private LimitedNBFC · Bulk Member
Published as Mandhana Finlease Private Limited
- Katariya Marketing & Financial Services Private LimitedNBFC · Bulk Member
Published as Katariya Marketing & Financial Services Private Limited
- Nirved Traders Private LimitedNBFC · Bulk Member
Published as Nirved Traders Private Limited
- Nishee Trading & Investments Private LimitedNBFC · Bulk Member
Published as Nishee Trading & Investments Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.