Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Sept 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two NBFCs under Section 45-IA(6) of the RBI Act, 1934: M/s Chandel Hire Purchase Pvt. Ltd. and M/s Golden Future Capital Limited. The cancellation means the companies cannot transact the business of a non-banking financial institution under Section 45-I(a) of the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of M/s Chandel Hire Purchase Pvt. Ltd. and M/s Golden Future Capital Limited in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following cancellation, the companies are barred from carrying on the business of a non-banking financial institution as defined under Section 45-I(a) of the RBI Act.
Operating Impact
The two NBFCs must cease NBFC operations immediately and cannot legally carry on non-banking financial business. This affects their ability to originate or conduct regulated NBFC activity going forward.
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
- 5 Aug 2016
- Effective From
- 5 Aug 2016
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Golden Future Capital Limited