Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The named entities are NBFCs/finance companies across Delhi, Uttar Pradesh, and Gujarat, and the release lists their registered office addresses and CoR dates of cancellation. RBI further stated 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.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- 12 Sept 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 (CoR) of 32 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 CoR is a licence cancellation, which is a severity-5 action regardless of any further business prohibition language.
Impact
All 32 affected companies lose the ability to carry on NBFC business going forward. Their registration stands cancelled, so they must cease operating as non-banking financial institutions and cannot legally undertake NBFC activities from the stated cancellation dates.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
Restrictions & Effective Timeline
- Effective From
- 12 Sept 2018
Affected Entities
- Gurukripa Finvest Private LimitedNBFC · Bulk Member
Published as Gurukripa Finvest Private Limited
- MNS Global Finance Private LimitedNBFC · Bulk Member
Published as MNS Global Finance Private Limited
- Godfrey Leasing & Finance LimitedNBFC · Primary
Published as Godfrey Leasing & Finance Limited
- Shankar Sales Promotion Private LimitedNBFC · Bulk Member
Published as Shankar Sales Promotion Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.