Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Dec 2018
Case Brief
In this release, the Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The affected entities are various NBFCs listed in the notice, and RBI further stated that they shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
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 (CoR) of 32 named companies. The release 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.
Operating Impact
All 32 named companies lose their CoR and cannot carry on NBFC business going forward. Customers, counterparties, and other stakeholders should not treat them as authorised to conduct non-banking financial institution activities after the cancellation date stated 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
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 32
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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