Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Nov 2018
Case Brief
The RBI cancelled the Certificates of Registration of 34 named non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The order covers multiple entities across different locations and states, and the release explicitly says they shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the RBI cancelled the Certificate of Registration of 34 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
Each of the 34 companies is barred from carrying on NBFC business going forward. This affects the companies themselves and their counterparties/customers to the extent any NBFC activity must cease or be wound down in compliance with the cancellation order.
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
- Entities Affected
- 34
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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