Case Brief
What Happened
The RBI cancelled the Certificates of Registration of 34 named non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The order covers multiple entities across different locations and states, and the release explicitly says they shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- Unknown date
- Effective From
- Unknown date
- Entities Affected
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the RBI cancelled the Certificate of Registration of 34 named companies. The release states that, as a result, 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 full licence cancellation, which carries severity 5 regardless of any other factors.
Impact
Each of the 34 companies is barred from carrying on NBFC business going forward. This affects the companies themselves and their counterparties/customers to the extent any NBFC activity must cease or be wound down in compliance with the cancellation order.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- Fountain Head Mercantiles Private LimitedNBFC · Bulk Member
Published as Fountain Head Mercantiles Private Limited
- Gannayak Trades Private LimitedNBFC · Bulk Member
Published as Gannayak Trades Private Limited
- Ambica Instalments LimitedNBFC · Bulk Member
Published as Ambica Instalments Limited
- Reed Finance Private LimitedNBFC · Bulk Member
Published as Reed Finance Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.