Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Apr 2024
Case Brief
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificates of Registration of four companies: Kundles Motor Finance Private Limited, Nithya Finance Limited, Bhatia Hire Purchase Pvt Ltd, and Jiwanjyoti Deposits and Advances Limited. The order means these companies are no longer permitted to carry on the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of four companies under Section 45-IA(6) of the RBI Act, 1934: Kundles Motor Finance Private Limited, Nithya Finance Limited, Bhatia Hire Purchase Pvt Ltd, and Jiwanjyoti Deposits and Advances Limited. 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 four companies are prohibited from transacting NBFC business going forward. This affects the companies directly and limits their ability to continue regulated financial intermediation activities until any separate lawful restoration or restructuring occurs.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 12 Mar 2024
- Effective From
- 12 Mar 2024
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Jiwanjyoti Deposits and Advances Limited