Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Apr 2013
Case Brief
The Reserve Bank of India cancelled the certificates of registration of two non-banking financial companies: M/s Hero Financial Services Limited and M/s Beeru Brothers Finance Limited. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are no longer permitted to carry on or transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to M/s Hero Financial Services Limited and M/s Beeru Brothers Finance Limited for carrying on the business of a non-banking financial institution. The release states that, following cancellation, the companies cannot transact the business of a non-banking financial institution. The statutory basis cited is Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
Both companies must stop non-banking financial institution business immediately from the cancellation dates stated in the release. Customers and counterparties dealing with these firms in an NBFC capacity are affected because the firms can no longer legally conduct that business.
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
- 17 Dec 1998
- Effective From
- 17 Dec 2012
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Beeru Brothers Finance Limited