Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
20 Jul 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to Kuzhiyathu Hire Purchase & Finance Private Limited, whose registered office was stated as 553/IV, Cheriyanad, Mampra P.O., Chengannur, Kerala. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result of the cancellation, the company cannot carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Kuzhiyathu Hire Purchase & Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company is barred from transacting NBFC business after June 17, 2009. This directly affects the entity and any counterparties relying on its financial services, because it can no longer operate as a regulated non-banking financial institution.
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
- 17 Jun 2009
- Effective From
- 17 Jun 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC