Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Mar 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Baliga Investments Private Limited, whose registered office was in Mysore, on 30 January 2009. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit from the business of a non-banking financial institution. Following the cancellation, the company is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Baliga Investments Private Limited under Section 45-IA(6) of the RBI Act, 1934. The press release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. As a result, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Baliga Investments Private Limited can no longer carry on non-banking financial institution business after the cancellation of its registration. The restriction directly affects the company’s ability to operate as an NBFC; no depositor/borrower-facing activity of that type may continue.
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
- 30 Jan 2009
- Effective From
- 30 Jan 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC