Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Oct 2004
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to M/s. CHPL Finance Limited, Secunderabad, with effect from October 18, 2004. The order was passed under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company is no longer permitted to operate as a non-banking financial institution under that registration.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to M/s. CHPL Finance Limited, Secunderabad on October 18, 2004. The release states that the cancellation was for carrying on the business of a non-banking financial institution, and cites Section 45IA of the Reserve Bank of India Act, 1934 as the statutory basis for RBI’s power to cancel the registration certificate of a non-banking financial company.
Operating Impact
M/s. CHPL Finance Limited, Secunderabad loses its RBI registration to conduct NBFC business. The company must stop operating as a regulated non-banking financial institution, and counterparties and customers should no longer rely on its NBFC status for new business or regulated activities.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Oct 2004
- Effective From
- 18 Oct 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC