Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Sept 2009
Case Brief
On August 31, 2009, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Anil Rai and Company Private Limited, whose registered office was at Jeevan Tara Building, 5-Parliament Street, New Delhi-110001. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, for the company’s non-banking financial institution business. As a result, the company is no longer permitted to 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/s. Anil Rai and Company Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop any NBFC/non-banking financial institution activity immediately and cannot legally continue that business after the cancellation. Counterparties and customers should no longer rely on it for NBFC services.
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
- 31 Aug 2009
- Effective From
- 31 Aug 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC