Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Apr 2019
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 24 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The release names each company and the respective cancellation order dates. Following the cancellations, the companies are not permitted to transact the business of a Non-Banking Financial Institution within the meaning of the RBI Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration (CoR) of 24 companies. The order lists each company and its CoR/cancellation order date, and states that the above companies shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
All 24 named companies lose their registration to operate as NBFCs and must stop conducting NBFC business. This affects the companies directly and may affect counterparties and customers dealing with them as financial institutions; any ongoing NBFC activity is barred from the cancellation dates mentioned in the release.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 24
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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