Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Feb 2011
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Commercial Hire Purchase (India) Ltd., whose registered office was in Kochi, on January 6, 2011. The cancellation follows rejection of the company’s application for a registration certificate under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled, on January 6, 2011, the Certificate of Registration issued to Commercial Hire Purchase (India) Ltd. for carrying on the business of a non-banking financial institution. The release states that, following rejection of the application for certificate of registration, the company cannot transact the business of a non-banking financial institution. The action is taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
Commercial Hire Purchase (India) Ltd. must cease NBFC/non-banking financial institution business operations. The restriction is permanent unless separately reversed by RBI or through a fresh lawful registration process; counterparties and customers cannot rely on it continuing to operate as an NBFC.
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
- 6 Jan 2011
- Effective From
- 6 Jan 2011
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC