Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Aug 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Financial Eyes (India) Limited, whose registered office was in Greater Kailash Part I, New Delhi, on July 25, 2007. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. Following the cancellation, the company is barred from transacting non-banking financial institution business.
Why RBI Acted
On July 25, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to Financial Eyes (India) Limited, under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. As a result of the cancellation, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
Financial Eyes (India) Limited must stop conducting NBFC/business of a non-banking financial institution. The restriction directly affects the company’s ability to operate in that line of business; no specific customer-facing deadline is stated beyond the cancellation date.
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
- 25 Jul 2007
- Effective From
- 25 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC