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. Cost Plus Credit Capital Limited, whose registered office was in Defence Colony, New Delhi. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily exited from the business of a non-banking financial institution, and following cancellation it cannot transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Cost Plus Credit Capital Limited under Section 45-IA(6) of the RBI Act, 1934. The stated basis was that the company had voluntarily exited from the business of a non-banking financial institution. As a result, the company is no longer permitted to transact NBFC business.
Operating Impact
The company can no longer carry on non-banking financial institution activities. Any future NBFC operations are barred unless a new lawful registration or permission is obtained under the applicable regulatory framework.
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
- 18 May 2009
- Effective From
- 18 May 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC