Case Brief
What Happened
The Reserve Bank of India cancelled the Certificate of Registration of 25 companies under Section 45-IA(6) of the RBI Act, 1934. The entities named include Anand Business Pvt. Ltd., Manisha Motor and General Finance Limited, Bridgestone Vyapaar Private Limited, and 22 others across Kolkata, New Delhi, Jaipur, Bengaluru, Hyderabad, and other locations. Following cancellation, the release states 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, 1934.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- 4 Jan 2019
- Effective From
- 4 Jan 2019
- 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 (CoR) of 25 named companies. The release states that, as a result, the 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 Certificate of Registration is a licensing action that fully stops the affected NBFCs from carrying on non-banking financial business, which falls in the highest severity band.
Impact
The affected companies can no longer carry on NBFC business. Customers, borrowers, and counterparties dealing with these firms are impacted because the entities are prohibited from operating as non-banking financial institutions going forward.
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
- 4 Jan 2019
Affected Entities
- Anand Business Pvt. LtdNBFC · Primary
Published as Anand Business Pvt. Ltd.
- Bridgestone Vyapaar Private LimitedNBFC · Bulk Member
Published as Bridgestone Vyapaar Private Limited
- PNR Fintex (P) LtdNBFC · Bulk Member
Published as PNR Fintex (P) Ltd.
- Neelanchal Mercantile Private LimitedNBFC · Bulk Member
Published as Neelanchal Mercantile Private Limited
- Oscar Investments Limited
Published as Oscar Investments Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.