Case Brief
What Happened
The Reserve Bank of India cancelled the Certificates of Registration of 34 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The named companies span multiple cities and states, and the release expressly says they shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the 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, RBI cancelled the Certificate of Registration of 34 named companies. The release states that these 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 Certificates of Registration is a licence cancellation, which is severity 5 regardless of any other facts.
Impact
The 34 affected companies must stop carrying on NBFC business. Counterparties and customers should no longer treat them as registered NBFCs, and any business conducted as a non-banking financial institution after the cancellation would be impermissible.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Affected Entities
- Ram Ban Investment & Finance Private LimitedNBFC · Bulk Member
Published as Ram Ban Investment & Finance Private Limited
- Namagiri Finance LimitedNBFC · Bulk Member
Published as Namagiri Finance Limited
- HFL Investment Private LimitedNBFC · Bulk Member
Published as HFL Investment Private Limited
- Hindon Sales Pvt. LtdNBFC · Bulk Member
Published as Hindon Sales Pvt. Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.