Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Nov 2011
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration No. 09.00044 dated March 2, 1998 issued to M/s. Canaan International Creditcap Limited under Section 45-IA(6) of the RBI Act, 1934. The company, with its registered office at Nellore, Andhra Pradesh, had been authorised to carry on the business of a non-banking financial institution. Following the cancellation, it is no longer permitted to transact NBFC business.
Why RBI Acted
RBI cancelled Certificate of Registration No. 09.00044 dated March 2, 1998 issued to M/s. Canaan International Creditcap Limited under Section 45-IA(6) of the RBI Act, 1934. The cancellation means the company can no longer transact the business of a non-banking financial institution.
Operating Impact
The company must cease NBFC operations and cannot carry on the business of a non-banking financial institution going forward. Counterparties and customers should not treat it as an authorised NBFC for new business. The release does not specify any transition period or effective date beyond the cancellation date of September 15, 2011.
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
- 15 Sept 2011
- Effective From
- 15 Sept 2011
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC