Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Jun 2005
Case Brief
On April 20, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to H. N. Finance Limited, whose registered office was in Bareilly. The cancellation was made under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to H. N. Finance Limited under Section 45IA of the RBI Act, 1934. The order states that the company was registered to carry on the business of a non-banking financial institution, and RBI has power to cancel such registration certificates under that section.
Operating Impact
H. N. Finance Limited can no longer carry on the business of a non-banking financial institution unless it obtains fresh regulatory permission. The cancellation is immediately adverse to the company and removes its right to operate as an NBFC.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 Apr 2005
- Effective From
- 20 Apr 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC