Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Jun 2008
Case Brief
On June 02, 2008, the Reserve Bank of India cancelled the Certificate of Registration granted to Belgaum Financiers Private Limited, whose registered office was in Belgaum, Karnataka. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. The release says the company had opted to exit from the business of 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 Belgaum Financiers Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and as a result the registration was cancelled and it can no longer transact the business of a non-banking financial institution.
Operating Impact
Belgaum Financiers Private Limited is barred from conducting non-banking financial institution business going forward. The action affects the company directly and removes its authority to operate as an NBFC; no penalty amount is mentioned.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 2 Jun 2008
- Effective From
- 2 Jun 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC