Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Aug 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 26 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The order lists the affected companies and states that they shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled the Certificate of Registration of 26 named companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 26 named companies lose their CoR and must stop NBFC activity. This prevents them from carrying on non-banking financial institution business going forward; the action affects the companies directly and, indirectly, their customers and counterparties relying on such services.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 1 Jun 2018
- Effective From
- 1 Jun 2018
- Entities Affected
- 26
- Entity Role
- Primary
- Entity Type
- NBFC
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