Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Jul 2009
Case Brief
On May 18, 2009, the Reserve Bank of India cancelled the certificate of registration of M/s Hima Finance Company Private Limited, whose registered office was in Hyderabad. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is barred from transacting 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 Hima Finance Company Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the registration was cancelled for carrying on the business of a non-banking financial institution, and that following cancellation the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop NBFC operations and cannot legally transact non-banking financial institution business after the cancellation. Customers and counterparties dealing with the firm in an NBFC capacity are affected by the termination of that authorization.
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
- 18 May 2009
- Effective From
- 18 May 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC