Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 Oct 2002
Case Brief
The Reserve Bank of India notified that it had cancelled, as surrendered on October 28, 2002, the Certificate of Registration issued to Amaravathi Finance Private limited, Vadapalani, Chennai, under Section 45-IA(6) of the RBI Act, 1934. The registration had permitted the company to carry on non-banking financial institution business. Following the cancellation, the company is no longer permitted to transact that business.
Why RBI Acted
Under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration issued to Amaravathi Finance Private limited, Chennai, as surrendered on October 28, 2002. The company had been authorised to carry on the business of a non-banking financial institution, and after cancellation it cannot transact that business as defined under Section 45 I(a).
Operating Impact
Amaravathi Finance Private limited loses its RBI registration and cannot carry on non-banking financial institution business going forward. Customers and counterparties should not treat it as authorised to undertake NBFC activity.
Regulatory Basis
- Section 45 IA (6) of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 28 Oct 2002
- Effective From
- 28 Oct 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC