Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Apr 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of G.S. Finance and Investments Limited, whose registered office was in Rajajinagar, Bangalore, under Section 45-IA(6) of the RBI Act, 1934. The release says the cancellation followed the company’s decision to exit the business of a non-banking financial institution. As a result, the company is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to G.S. Finance and Investments Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
G.S. Finance and Investments Limited must cease NBFC operations and cannot undertake the business of a non-banking financial institution going forward. The restriction affects the company itself and any counterparties relying on its NBFC activities; no deadline beyond the cancellation date is stated.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 17 Mar 2009
- Effective From
- 17 Mar 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC