Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 Aug 2007
Case Brief
On July 20, 2007, the Reserve Bank of India cancelled the Certificate of Registration of Bhasin Credit Aid Limited, whose registered office was in Madangir, New Delhi. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, Bhasin Credit Aid Limited cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Bhasin Credit Aid Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and following cancellation it cannot transact that business.
Operating Impact
Bhasin Credit Aid Limited is barred from carrying on NBFC business going forward. This affects the company’s ability to operate as a non-banking financial institution and prevents it from undertaking regulated non-banking financial activities.
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
- 20 Jul 2007
- Effective From
- 20 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC