Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Aug 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s. Commitment Capital Services Limited on July 27, 2009. The company’s registered office was at 3, Gagan Vihar, Delhi-110092. RBI cited the company’s voluntary exit from the business of a non-banking financial institution and exercised its powers under Section 45-IA(6) of the RBI Act, 1934. As a result, the company can no longer transact NBFC business.
Why RBI Acted
On July 27, 2009, RBI cancelled the Certificate of Registration granted to M/s. Commitment Capital Services Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had voluntarily exited from the business of a non-banking financial institution, after which it could no longer carry on that business.
Operating Impact
The company is barred from transacting business as a non-banking financial institution going forward. Customers and counterparties cannot rely on it for NBFC services, and the cancellation is effective from the date of the RBI order.
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
- 27 Jul 2009
- Effective From
- 27 Jul 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC