Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Oct 2009
Case Brief
On 31 August 2009, the Reserve Bank of India cancelled the certificate of registration granted to M/s. Bharat Finance Corporation Private Limited, whose registered office was in New Delhi. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934. 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. Bharat Finance Corporation 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 conducting NBFC business immediately. Customers and counterparties can no longer deal with it as a registered non-banking financial institution, and its operational ability in that regulated line of business is withdrawn.
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 Aug 2009
- Effective From
- 31 Aug 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC