Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Sept 2019
Case Brief
The Reserve Bank of India, using powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 26 companies. The order covers a list of NBFCs with cancellation dates spanning August 21, 2019 to September 5, 2019. Following cancellation, the entities are not permitted to transact the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of 26 companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each affected company and states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 26 affected companies must stop NBFC საქმიანity/operations immediately upon cancellation and cannot legally carry on non-banking financial business. This impacts the companies themselves and any customers or counterparties relying on their NBFC activities.
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
- Effective From
- 21 Aug 2019
- Entities Affected
- 26
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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