Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
15 Jun 2006
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. A.P. Tourism Finance Limited, Hyderabad on May 15, 2006. The order was passed under Section 45-IA(6) of the RBI Act, 1934, and the release says the company had opted to exit from the business of a non-banking financial institution. As a result, the company can no longer transact NBFC business.
Why RBI Acted
On May 15, 2006, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. A.P. Tourism Finance Limited, Hyderabad for carrying on the business of a non-banking financial institution. The release states that the company had opted to exit from the NBFC business. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934.
Operating Impact
The company is no longer permitted to carry on non-banking financial institution business after the cancellation. This ends its ability to operate as a registered NBFC, affecting its customers and counterparties to the extent they relied on its NBFC activities.
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
- 15 May 2006
- Effective From
- 15 May 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC