RBI cancels Certificate of Registration of One HFC
Case Brief
The Reserve Bank of India announced cancellation of the Certificate of Registration of a housing finance company under Section 29A(6) of the National Housing Bank Act, 1987. No company name or additional factual details were provided in the excerpt.
RBI exercised its powers under Section 29A(6) of the National Housing Bank Act, 1987 to cancel the Certificate of Registration (CoR) of one housing finance company. The release does not provide the company name or further factual basis for the cancellation.
Severity Assessment
Cancellation of a Certificate of Registration is a licence cancellation, which is severity 5.
The affected housing finance company can no longer operate as an RBI-registered housing finance company. This is a full adverse action with immediate operational consequences for the entity and its customers/counterparties.
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