Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Feb 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M. G. Kalyan Leafin & Investments Limited, whose registered office is in Hyderabad, on 2 February 2005. The cancellation was made under Section 45IA of the RBI Act, 1934, which authorizes RBI to cancel the registration certificate of a non-banking financial company. As a result, the company can no longer carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to M. G. Kalyan Leafin & Investments Limited, Hyderabad, thereby stopping it from carrying on the business of a non-banking financial institution. The release states that the cancellation was made under powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of an NBFC.
Operating Impact
M. G. Kalyan Leafin & Investments Limited loses its RBI registration and cannot continue NBFC business. The restriction is final unless separately reversed through a fresh regulatory process, and it directly affects the company’s ability to operate as a non-banking financial institution.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 2 Feb 2005
- Effective From
- 2 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC