Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Dec 2005
Case Brief
On November 24, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to Kumbh Finance Limited, whose registered office was in Kanpur, Uttar Pradesh. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. RBI said the company had opted to exit the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Kumbh Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and RBI therefore cancelled its registration certificate.
Operating Impact
Kumbh Finance Limited can no longer operate as a registered non-banking financial company. The action primarily affects the company and any counterparties dealing with it as an NBFC, and it reflects the formal end of its NBFC registration.
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
- 24 Nov 2005
- Effective From
- 24 Nov 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC