Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Jan 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of two companies: M/s. Inmex Investments Private Limited and M/s. Chitra Finance and Investment Private Limited. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are not permitted to 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. Inmex Investments Private Limited and M/s. Chitra Finance and Investment Private Limited for carrying on the business of a non-banking financial institution. The release cites Section 45-IA(6) of the RBI Act, 1934 as the statutory basis for cancellation. It also states that after cancellation of the registration certificate, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
Both companies are barred from continuing NBFC business from the stated cancellation date. Customers and counterparties should no longer treat them as registered NBFCs for new non-banking financial institution transactions.
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
- Effective From
- 25 Nov 2009
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. Chitra Finance and Investment Private Limited