Finance Exchange (India) Limited: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

30 Aug 2018

Case Brief

The Reserve Bank of India, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs named in the press release. The companies span locations including Kolkata, Hyderabad, Jammu, Thrissur, Punjab, Telangana, Kerala and Palakkad, with the release listing their office addresses and cancellation order dates. Following cancellation, the entities cannot transact business as Non-Banking Financial Institutions under Section 45-I(a) of the RBI Act, 1934.

Why RBI Acted

Licensing breach

The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 30 named companies. The press release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.

Operating Impact

All 30 affected companies lose their registration as NBFCs and must stop carrying on NBFC business. Customers, borrowers, and counterparties should no longer treat them as registered non-banking financial institutions; the restriction applies immediately from the stated cancellation order dates.

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
Order Date: 4 Jul 2018
Effective From: 17 May 2018
Entities Affected: 30
Entity Role: Bulk Member
Entity Type: NBFC

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Finance Exchange (India) Limited

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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