Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Oct 2008
Case Brief
On September 9, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Hastah Finances Limited, a non-banking financial company with its registered office in Visakhapatnam. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Hastah Finances Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and following cancellation it cannot transact that business.
Operating Impact
Hastah Finances Limited must stop undertaking non-banking financial institution business. The cancellation directly affects the company’s ability to operate in its regulated NBFC business line, and counterparties/customers cannot rely on it for such activities going forward.
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
- 9 Sept 2008
- Effective From
- 9 Sept 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC