Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Sept 2024
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four NBFCs: Bharatpur Investment Ltd, K.S. Finlease Limited, Build Con Finance Limited, and Operating Lease and Hire Purchase Company Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the companies are not permitted to transact the business of a Non-Banking Financial Institution.
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of four companies: Bharatpur Investment Ltd, K.S. Finlease Limited, Build Con Finance Limited, and Operating Lease and Hire Purchase Company Limited. The release 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 four companies lose their NBFC registration and must stop carrying on NBFC business. Customers and counterparties should no longer treat them as authorised non-banking financial institutions, and any further activity would be outside the RBI registration regime.
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
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Build Con Finance Limited