Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
30 Jul 2018
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of 35 companies under Section 45-IA(6) of the RBI Act, 1934. The order lists 35 NBFCs, many based in Chennai and other Tamil Nadu locations, and states that the affected companies shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act. This is a fresh cancellation action affecting all 35 named entities.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration of 35 named companies. As a result, these entities are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
Each of the 35 companies is barred from carrying on non-banking financial business going forward. They must cease NBFC operations and cannot legally transact as non-banking financial institutions after the respective cancellation dates stated in the release.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Jun 2018
- Effective From
- 4 Jun 2018
- Entities Affected
- 35
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Lodha Finance India Limited
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