Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Oct 2018
Case Brief
RBI, acting under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs named in the press release. The order covers multiple companies across Delhi, Kolkata, Haryana and elsewhere, and the release makes clear that these entities may not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration (CoR) of 30 named companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 30 listed companies are prohibited from carrying on NBFC business going forward. This affects their ability to undertake non-banking financial activities and signals that they must cease such operations immediately; the restriction applies to the named entities only.
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
- 2 Aug 2018
- Effective From
- 2 Aug 2018
- Entities Affected
- 30
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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