Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Nov 2006
Case Brief
On October 13, 2006, the Reserve Bank of India cancelled the Certificate of Registration of M/s Goodluck Loans and Leasing Limited, Kanpur, which was registered to carry on the business of a non-banking financial institution. The release says the cancellation was because the company had opted to exit from that business. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s Goodluck Loans and Leasing Limited, Kanpur, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, which was the stated basis for cancellation. Following cancellation, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
M/s Goodluck Loans and Leasing Limited can no longer conduct NBFC business after the cancellation. The restriction affects the company’s ability to originate or conduct non-banking financial institution activities, and any counterparties or customers relying on such services must cease those dealings with the firm.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 13 Oct 2006
- Effective From
- 13 Oct 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC