Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Sept 2002
Case Brief
The Reserve Bank of India notified that it had cancelled, as surrendered on September 19, 2002, the Certificate of Registration issued to Indian Finance and Factors Limited under Section 45-IA of the RBI Act, 1934. The entity was registered at Mylapore, Chennai, and was authorised to carry on non-banking financial institution business. Following the cancellation, the company is no longer permitted to transact such business.
Why RBI Acted
The Reserve Bank of India cancelled, as surrendered on September 19, 2002, the Certificate of Registration No. 07.00379 dated November 25, 1998 issued to Indian Finance and Factors Limited under sub-section (6) of Section 45-IA of the RBI Act, 1934. The company had been registered to carry on the business of a non-banking financial institution, and the release states that it cannot thereafter transact that business as defined under Section 45-I(a).
Operating Impact
Indian Finance and Factors Limited loses the legal ability to operate as a non-banking financial institution. Customers and counterparties should no longer treat it as authorised to undertake NBFC activities, and any such operations must cease.
Regulatory Basis
- sub-section (6) of Section 45 IA of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Nov 1998
- Effective From
- 19 Sept 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC