Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Feb 2016
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of 26 non-banking financial companies named in the annex, invoking Section 45-IA(6) of the RBI Act, 1934. This is a licensing cancellation affecting each of the listed NBFCs and means they cannot transact the business of a non-banking financial institution as defined under the Act.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of 26 non-banking financial companies, exercising powers under Section 45-IA(6) of the RBI Act, 1934. As a result, the listed companies can no longer transact the business of a non-banking financial institution under clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
The 26 named NBFCs are barred from carrying on non-banking financial business after the cancellation of their registration certificates. This affects the companies’ ability to operate as NBFCs and has implications for their customers and counterparties dealing with 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
- Entities Affected
- 26
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Binikom Vyapaar Pvt. Ltd
M/s Abirami Financial Services [India] Limited
NBFC
1 shared action
1 restriction
M/s Advantage Finvest Limited
NBFC
1 shared action
1 restriction
M/s Alpha General Leasing & Finance Private Limited
NBFC
1 shared action
1 restriction
M/s Avorik Vyapaar Pvt. Ltd
NBFC
1 shared action
1 restriction
M/s Bajaj Auto Holdings Limited
NBFC
1 shared action
1 restriction