Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Jan 2006
Case Brief
On January 4, 2006, the Reserve Bank of India cancelled the Certificate of Registration granted to Adayar Finance & Leasing Limited, Chennai, under Section 45-IA(6) of the RBI Act, 1934. The company had been carrying on business as a non-banking financial institution, and following cancellation it cannot transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Adayar Finance & Leasing Limited under Section 45-IA(6) of the RBI Act, 1934. The action was taken in relation to its business as a non-banking financial institution, and as a result the company is barred from transacting NBFC business.
Operating Impact
Adayar Finance & Leasing Limited must stop conducting non-banking financial institution business. The restriction directly affects the company’s operations and any counterparties dealing with it in an NBFC capacity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Jan 2006
- Effective From
- 4 Jan 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC