Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 May 2006
Case Brief
On April 17, 2006, the Reserve Bank of India cancelled the certificate of registration granted to Confidence Credit and Investment Limited, whose registered office was in Chennai. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Confidence Credit and Investment Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution, and that following cancellation it cannot transact that business.
Operating Impact
Confidence Credit and Investment Limited must stop operating as a non-banking financial institution. The restriction is permanent unless a fresh regulatory approval is later granted, and it directly affects the company’s ability to conduct NBFC business.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 17 Apr 2006
- Effective From
- 17 Apr 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC