Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Mar 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of Jasvin Leasing & Finance Private Limited and Payyade Finance Private Limited. The order was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, both companies cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration granted to Jasvin Leasing & Finance Private Limited and Payyade Finance Private Limited for carrying on the business of a non-banking financial institution. The cancellation was exercised under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following cancellation, the companies are no longer permitted to conduct NBFC business.
Operating Impact
Both companies lose the regulatory permission needed to operate as NBFCs and must stop transacting non-banking financial institution business. The action directly affects the two companies and their counterparties, since the entities can no longer undertake NBFC activities.
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
- Effective From
- 31 Dec 2009
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Jasvin Leasing & Finance Private Limited