Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Jan 2006
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Chennakesava Finance and Investments Private Limited on January 4, 2006. The company, whose registered office is in Hyderabad, was registered to carry 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. As a result, the company is prohibited from transacting non-banking financial institution business.
Why RBI Acted
On January 4, 2006, the Reserve Bank of India cancelled the Certificate of Registration granted to Chennakesava Finance and Investments Private Limited, Hyderabad, for carrying on the business of a non-banking financial institution. The release cites Section 45-IA(6) of the Reserve Bank of India Act, 1934 as the statutory basis. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Chennakesava Finance and Investments Private Limited loses its RBI registration and cannot carry on NBFC/NBFI business going forward. This directly affects the company’s operations and counterparties dealing with it as a finance company.
Regulatory Basis
- Section 45-IA (6) 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
- 4 Jan 2006
- Effective From
- 4 Jan 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC