Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Nov 2022
Case Brief
In this release, the RBI exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificates of Registration of two NBFCs: Grihastha Finance Limited and Pawan Motor and General Finance Private Limited. The cancellation means the companies are barred from transacting the business of a Non-Banking Financial Institution as defined in the RBI Act.
Why RBI Acted
The RBI cancelled the Certificate of Registration of Grihastha Finance Limited and Pawan Motor and General Finance Private Limited under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under the Act.
Operating Impact
The two companies must stop carrying on NBFC business. Borrowers, counterparties, and other stakeholders should treat the entities as no longer authorised to operate as non-banking financial institutions.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 10 Oct 2022
- Effective From
- 10 Oct 2022
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Grihastha Finance Limited