Chandranidhi Exports Private Limited: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

8 Jan 2019

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The order covers multiple NBFCs across West Bengal, Gujarat, Uttar Pradesh and Delhi, and the release lists each company along with its registered office and cancellation date. RBI further states that 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.

Why RBI Acted

Licensing breach

In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 32 companies. The release states that, as a result, the above 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 32 named companies must cease NBFC activity and cannot legally carry on business as non-banking financial institutions. Customers and counterparties dealing with these firms should expect that NBFC services are no longer permitted after the cancellation date.

Regulatory Basis

Section 45-IA (6) of the Reserve Bank of India Act, 1934
Section 45-I(a) of the RBI Act, 1934

Action Facts

Primary Impact: License cancellation
Effective From: 5 Nov 2018
Entities Affected: 32
Entity Role: Bulk Member
Entity Type: NBFC

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Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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