Case Brief
What Happened
The Reserve Bank of India cancelled the Certificates of Registration of 23 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The named companies include entities based in New Delhi, Kolkata, Chennai, Faridabad and Ahmedabad. Following cancellation, they are prohibited from carrying on the business of a Non-Banking Financial Institution as defined in the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- New Delhi, Delhi
- Order Date
- Unknown date
- Effective From
- 10 May 2019
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration of 23 named companies. As a result, 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 licence cancellation, which is a severity-5 action regardless of whether any monetary penalty is involved.
Impact
All 23 affected companies must stop NBFC activities and cannot legally transact non-banking financial business. Counterparties and customers dealing with these firms are impacted because the firms lose their regulatory permission to operate as NBFCs. The order is effective from the stated cancellation dates for each company.
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
- 10 May 2019
Affected Entities
- Intimate Finance & Investment Private LimitedNBFC · Bulk Member
Published as Intimate Finance & Investment Private Limited
- Amass Proctor Finance & Leasing Private LimitedNBFC · Bulk Member
Published as Amass Proctor Finance & Leasing Private Limited
- Queen Consultancy Services Private LimitedNBFC · Bulk Member
Published as Queen Consultancy Services Private Limited
- Supraneet Finance and Consultants LimitedNBFC · Bulk Member
Published as Supraneet Finance and Consultants Limited
Official RBI Source
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