Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Jan 2013
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of Emcorp Finance Limited and Care Credit and Investments Company Private Ltd., both NBFCs with registered offices in Tamil Nadu. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies 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 Emcorp Finance Limited and Care Credit and Investments Company Private Ltd. for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that following cancellation of the registration certificate, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
Both companies lose the ability to conduct NBFC business from the cancellation date stated in the release. Customers and counterparties should expect the entities to cease non-banking financial institution activity, while the named companies remain subject to the legal consequences of the CoR cancellation.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Mar 1998
- Effective From
- 3 Dec 2012
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Care Credit and Investments Company Private Ltd