Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Oct 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies: M/s Barkha Financiers Limited, M/s Barkha Instalments Limited, and M/s Prachi Chemical and Industries Limited. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies are no longer permitted to transact the business of a non-banking financial institution under Section 45-IA(a).
Why RBI Acted
The RBI cancelled the Certificate of Registration of three non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release lists M/s Barkha Financiers Limited, M/s Barkha Instalments Limited, and M/s Prachi Chemical and Industries Limited, and states that following cancellation of the registration certificate, these companies cannot transact the business of a non-banking financial institution under Section 45-IA(a).
Operating Impact
These three companies are barred from conducting NBFC business going forward. Customers and counterparties should expect that the entities cannot legally operate as non-banking financial institutions after the cancellation dates.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 16 Aug 2016
- Effective From
- 16 Aug 2016
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Barkha Instalments Limited