Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Dec 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to Consumer Credits and Hire Purchases Limited, a non-banking financial company with its registered office in Kolencherry, Kerala. The action was taken 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 the certificate of registration granted to M/s. Consumer credits and Hire Purchases Limited, whose registered office is at Kolencherry, Kerala, for carrying on the business of a non-banking financial institution. The press release cites Section 45-IA(6) of the RBI Act, 1934 as the statutory basis for cancellation. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Consumer Credits and Hire Purchases Limited must stop carrying on NBFC business. The cancellation directly affects the company’s ability to operate, and counterparties/customers can no longer rely on it to undertake non-banking financial institution activities.
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
- 10 Nov 2009
- Effective From
- 10 Nov 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC