Case Brief
What Happened
In a fresh adverse action, the Reserve Bank of India cancelled the Certificates of Registration of 29 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The press release lists each company and its date of cancellation, and states that 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.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Not specified
- Order Date
- Unknown date
- Effective From
- 14 Jan 2019
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificates of Registration of 29 companies. Following cancellation, these entities are no longer permitted to 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 license cancellation action, which carries severity 5 regardless of monetary amount.
Impact
Each of the 29 named companies must stop carrying on NBFC business. The cancellation prevents them from legally 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
- 14 Jan 2019
Affected Entities
- Dazzle Holdings Private LimitedNBFC · Bulk Member
Published as Dazzle Holdings Private Limited
- DFCL Credits LtdNBFC · Bulk Member
Published as DFCL Credits Ltd.
- Sangat Leasing & Finance Private LimitedNBFC · Bulk Member
Published as Sangat Leasing & Finance Private Limited
- Satyaprakash Commodities Private LimitedNBFC · Bulk Member
Published as Satyaprakash Commodities Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.