Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Jul 2023
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four NBFCs: Nanma Chits and Financiers Limited, Chidrupi Financial Services Limited, Goldline Financial Services Ltd., and Kailash Auto Finance Limited. The order was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies must not transact NBFC business going forward.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of four companies under Section 45-IA(6) of the RBI Act, 1934: Nanma Chits and Financiers Limited, Chidrupi Financial Services Limited, Goldline Financial Services Ltd., and Kailash Auto Finance Limited. Following cancellation, the companies are prohibited from transacting the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The four companies can no longer operate as non-banking financial institutions. Any NBFC business carried on by them must stop, and customers/counterparties should not treat them as authorised NBFCs for new business.
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
- 19 Jun 2023
- Effective From
- 19 Jun 2023
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Goldline Financial Services Ltd