Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Oct 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of K.N.R. Finance & Investments Private Limited on September 14, 2009 under Section 45-IA(6) of the RBI Act, 1934. The company’s registration was for carrying on the business of a non-banking financial institution. As a result of the cancellation, it cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to K.N.R. Finance & Investments Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and that after cancellation it cannot transact such business.
Operating Impact
K.N.R. Finance & Investments Private Limited must stop carrying on non-banking financial institution business. Counterparties and customers relying on the company’s NBFC operations can no longer be served in that capacity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 14 Sept 2009
- Effective From
- 14 Sept 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC