Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
15 Feb 2005
Case Brief
On February 8, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to Bhaskar Narayan Finance Company Private Limited, Hyderabad. The order was passed under Section 45IA of the RBI Act, 1934, which governs registration and cancellation of NBFCs. This is a full licence cancellation affecting the company’s ability to carry on non-banking financial institution business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Bhaskar Narayan Finance Company Private Limited, Hyderabad, for carrying on the business of a non-banking financial institution. The release states that the cancellation was issued under Section 45IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of an NBFC.
Operating Impact
Bhaskar Narayan Finance Company Private Limited is no longer permitted to carry on NBFC business pursuant to its cancelled Certificate of Registration. The restriction directly affects the company and any existing or prospective customers/counterparties relying on its NBFC operations.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 8 Feb 2005
- Effective From
- 8 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC