Case Brief
What Happened
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 companies. The release lists each affected company and states that, as a consequence, 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
- 2 Aug 2018
- Effective From
- 2 Aug 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of 30 companies under Section 45-IA(6) of the RBI Act, 1934. As a result, these entities are no longer permitted to 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 severity-5 action because it removes the entities' right to operate as NBFCs.
Impact
All 30 affected companies are barred from carrying on NBFC business going forward. Any lending or other non-banking financial activity that depended on their CoR is prohibited, affecting their ability to operate as regulated 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
- Arihant Exports LtdNBFC · Bulk Member
Published as Arihant Exports Ltd.
- Bahety Finlease Co. Private LimitedNBFC · Bulk Member
Published as Bahety Finlease Co. Private Limited
- Khubsoorat Leasing and Finance Private LimitedNBFC · Bulk Member
Published as Khubsoorat Leasing and Finance Private Limited
- Mahabali Rubbers Private Limited (Presently known as Goel Tempo Finance Private Limited)NBFC · Bulk Member
Published as Mahabali Rubbers Private Limited (Presently known as Goel Tempo Finance Private Limited)
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.