Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Dec 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The entities named are M/s Lakshmi Exim Private Ltd, M/s Rajrishabh Finance & Investments Private Limited, M/s Chirag Viniyog & Commercial Private Limited, and M/s Aashka Holdings Private Limited (presently known as M/s Aashka Holdings Limited). Following the cancellation, these companies are no longer permitted to carry on the business of a non-banking financial institution under clause (a) of Section 45-I of the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of four non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The order lists M/s Lakshmi Exim Private Ltd, M/s Rajrishabh Finance & Investments Private Limited, M/s Chirag Viniyog & Commercial Private Limited, and M/s Aashka Holdings Private Limited (presently known as M/s Aashka Holdings Limited). As a result, these companies cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
These four companies cannot legally transact NBFC business going forward. The restriction is immediate and affects the entities’ ability to continue lending or other non-banking financial activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Oct 2016
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Aashka Holdings Private Limited (Presently known as M/s Aashka Holdings Limited)