Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Nov 2005
Case Brief
On October 7, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to Chandimandir Motor Finance Private Limited, whose registered office is in Chandigarh. The cancellation was for carrying on the business of a non-banking financial institution, under Section 45-IA of the Reserve Bank of India Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Chandimandir Motor Finance Private Limited, Chandigarh, for carrying on the business of a non-banking financial institution. The release states that RBI is empowered under Section 45-IA of the Reserve Bank of India Act, 1934 to cancel the registration certificate of a non-banking financial company.
Operating Impact
The company loses its registration to conduct non-banking financial institution business. It must cease NBFC operations, and counterparties should no longer treat it as an authorised registered NBFC.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 7 Oct 2005
- Effective From
- 7 Oct 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC