Case Brief
What Happened
The Reserve Bank of India, using powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 26 companies. The order covers a list of NBFCs with cancellation dates spanning August 21, 2019 to September 5, 2019. Following cancellation, the entities are not permitted to transact the business of a Non-Banking Financial Institution under the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- 21 Aug 2019
- Entities Affected
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of 26 companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each affected company and 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 Certificate of Registration is a licence cancellation, which carries severity 5 regardless of any monetary amount.
Impact
All 26 affected companies must stop NBFC საქმიანity/operations immediately upon cancellation and cannot legally carry on non-banking financial business. This impacts the companies themselves and any customers or counterparties relying on their NBFC activities.
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
- 21 Aug 2019
Affected Entities
- Padmanabham Leasing & Financials Private LimitedNBFC · Bulk Member
Published as Padmanabham Leasing & Financials Private Limited
- Walter Niryat Private LimitedNBFC · Bulk Member
Published as Walter Niryat Private Limited
- Manbir Fincon Private LtdNBFC · Bulk Member
Published as Manbir Fincon Private Ltd.
- Young Street Capital Services Private LimitedNBFC · Bulk Member
Published as Young Street Capital Services Private Limited
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.