Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Aug 2007
Case Brief
On July 24, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to M.N.K. Financiers Private Limited, whose registered office was in New Delhi. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M.N.K. Financiers Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the registration had been granted for carrying on the business of a non-banking financial institution, and after cancellation the company cannot transact that business.
Operating Impact
M.N.K. Financiers Private Limited is barred from carrying on NBFC business after the cancellation. This removes its ability to legally undertake non-banking financial institution activities, affecting its operations and counterparties relying on those services.
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 Jul 2007
- Effective From
- 24 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC