Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Nov 2018
Case Brief
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 31 companies. The entities listed are NBFCs across several locations, including the first named Baynee Industries Ltd. and others. Following cancellation, 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
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 31 companies. The listed entities, all NBFCs, were therefore prohibited from carrying on the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the Act.
Operating Impact
The 31 affected companies are barred from continuing NBFC business and must stop transacting as non-banking financial institutions. This directly affects the companies themselves and any counterparties relying on their lending or finance activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 31
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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