Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Sept 2003
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Abhyudaya Investments Private Limited, whose registered office is in Secundrabad, Andhra Pradesh, on September 2, 2003. The cancellation was issued under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Abhyudaya Investments Private Limited on September 2, 2003 under Section 45IA of the RBI Act, 1934. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Abhyudaya Investments Private Limited is barred from carrying on non-banking financial institution business after the cancellation takes effect. The immediate operational impact is that it can no longer conduct NBFC activities; the release does not mention any deposit-taking or asset-alienation prohibition being separately imposed, only the registration cancellation.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- Section 45MB (1) of this Act
- Section 45MB (2) of this Act
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 2 Sept 2003
- Effective From
- 2 Sept 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC