Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 May 2014
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of five NBFCs: SKLS Finance Pvt. Ltd., B.K.T. Finance Ltd., K.K.P. Credits Pvt. Ltd., M.C.T. Finance Pvt. Ltd., and Thanjavur Investment Ltd. The action was taken under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Following cancellation, these companies are not permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of five non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. After cancellation, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
The five companies must stop non-banking financial institution operations. Customers and counterparties can no longer rely on them for NBFC services after the respective cancellation dates; the affected firms are barred from transacting such business.
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
- Effective From
- 28 Mar 2014
- Entities Affected
- 5
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to B.K.T.Finance Ltd
K.K.P. Credits Pvt. Ltd
NBFC · Chennai, Tamil Nadu
1 shared action
1 restriction
M.C.T. Finance Pvt. Ltd
NBFC · Chennai, Tamil Nadu
1 shared action
1 restriction
SKLS Finance Pvt. Ltd
NBFC · Chennai, Tamil Nadu
1 shared action
1 restriction
Thanjavur Investment Ltd
NBFC · Chennai, Tamil Nadu
1 shared action
1 restriction