Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Nov 2018
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of 34 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The named companies span multiple cities and states, and the release expressly says they shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 34 named companies. The release states that these companies shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
The 34 affected companies must stop carrying on NBFC business. Counterparties and customers should no longer treat them as registered NBFCs, and any business conducted as a non-banking financial institution after the cancellation would be impermissible.
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
- 34
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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