Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 May 2008
Case Brief
On March 31, 2008, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Akhil Sanghi Finance Private Limited, which was granted for carrying on the business of a non-banking financial institution. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following this action, the company is barred from transacting non-banking financial institution business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Akhil Sanghi Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. As a result, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
The company must stop carrying on non-banking financial institution business. Customers and counterparties dealing with the firm in that capacity can no longer rely on it to provide NBFC services, and the restriction is immediate upon cancellation.
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
- 31 Mar 2008
- Effective From
- 31 Mar 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC