Case Brief
What Happened
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 31 companies. The entities listed are NBFCs across several locations, including the first named Baynee Industries Ltd. and others. Following cancellation, 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.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 31 companies. The listed entities, all NBFCs, were therefore prohibited from carrying on the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the Act.
Severity Assessment
Cancellation of CoR is a license cancellation, which is a severity-5 action regardless of any other factors.
Impact
The 31 affected companies are barred from continuing NBFC business and must stop transacting as non-banking financial institutions. This directly affects the companies themselves and any counterparties relying on their lending or finance activities.
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
Affected Entities
- Baynee Industries LtdNBFC · Primary
Published as Baynee Industries Ltd.
- Chopra Credits Private LimitedNBFC · Bulk Member
Published as Chopra Credits Private Limited
- Minar Leasing Private LimitedNBFC · Bulk Member
Published as Minar Leasing Private Limited
- Mada Fininvest Limited (Presently known as Multiplex Fincap Limited)NBFC · Bulk Member
Published as Mada Fininvest Limited (Presently known as Multiplex Fincap Limited)
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.