Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Jun 2007
Case Brief
The Reserve Bank of India, on May 14, 2007, cancelled the Certificate of Registration of Bhawani Fincap Private Limited, a non-banking financial company based in New Delhi. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Bhawani Fincap Private 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 conduct that business.
Operating Impact
Bhawani Fincap Private Limited loses the legal ability to conduct NBFC business going forward. This directly affects the company’s operations and any customers or counterparties relying on its lending or other non-banking financial services.
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
- 14 May 2007
- Effective From
- 14 May 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC