Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Jan 2005
Case Brief
On December 31, 2004, the Reserve Bank of India cancelled the Certificate of Registration issued to M/s. Ideal Commerce Limited, Ahmedabad, for carrying on the business of a non-banking financial institution. RBI cited its powers under Section 45IA of the Reserve Bank of India Act, 1934, which governs registration and cancellation of NBFC certificates.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to M/s. Ideal Commerce Limited, Ahmedabad, for carrying on the business of a non-banking financial institution. The release states that this action was taken under the powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company.
Operating Impact
M/s. Ideal Commerce Limited can no longer conduct non-banking financial institution business unless it obtains any fresh authorization that may be legally available. The cancellation directly affects the company’s ability to operate as an NBFC and removes its registration-based permission to carry on that business.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 31 Dec 2004
- Effective From
- 31 Dec 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC