Case Brief
What Happened
RBI, using its powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs. The release lists each affected company and notes that, as a result, 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
- Not specified
- Order Date
- Unknown date
- Effective From
- 2 Aug 2018
- Entities Affected
- 30
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 named companies. The release states that 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 Certificates of Registration is a license cancellation, which carries the maximum structural severity of 5.
Impact
All 30 named companies lose their NBFC registration and are barred from carrying on non-banking financial institution business. This directly affects their ability to continue regulated lending/finance activities as NBFCs.
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
- 2 Aug 2018
Affected Entities
- Padmavati Leasing and Credits Private LimitedNBFC · Bulk Member
Published as Padmavati Leasing and Credits Private Limited
- R.P. Narang Finance Investment & Leasing Pvt. LtdNBFC · Bulk Member
Published as R.P. Narang Finance Investment & Leasing Pvt. Ltd.
- Prem Finsec Private LimitedNBFC · Bulk Member
Published as Prem Finsec Private Limited
- Tee Kay Finvest LimitedNBFC · Bulk Member
Published as Tee Kay Finvest Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.