Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Sept 2005
Case Brief
On 2 August 2005, the Reserve Bank of India cancelled the Certificate of Registration of Indian Finances Private Limited, whose registered office was at Allahabad, Uttar Pradesh. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. RBI stated that the company had opted to exit the business of a non-banking financial institution. Following the cancellation, the company cannot carry on NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Indian Finances Private Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had opted to exit from the business of a non-banking financial institution. As a result, it can no longer transact NBFC business.
Operating Impact
Indian Finances Private Limited is barred from conducting any non-banking financial institution business after the cancellation of its registration. The restriction applies immediately from the cancellation date and affects the company’s ability to operate as an NBFC.
Regulatory Basis
- Section 45-IA (6) 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
- 2 Aug 2005
- Effective From
- 2 Aug 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC