Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Nov 2005
Case Brief
On September 15, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to D. S. Brar Finance Company Private Limited, whose registered office was in Moga, Punjab. The cancellation was issued under Section 45-IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. This is a terminal regulatory action affecting the company’s ability to operate as an NBFC.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to D. S. Brar Finance Company Private Limited, Moga, enabling it to carry on the business of a non-banking financial institution. The release cites Section 45-IA of the Reserve Bank of India Act, 1934 as the statutory basis for cancellation of an NBFC’s registration certificate.
Operating Impact
The company loses its RBI registration to conduct non-banking financial institution business. It can no longer lawfully operate as an NBFC under the cancelled certificate, affecting its ability to undertake regulated lending/financial activities.
Regulatory Basis
- Section 45-IA 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
- 15 Sept 2005
- Effective From
- 15 Sept 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC