Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Dec 2004
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s Interactive Financial Services Limited, Ahmedabad, on December 7, 2004. The cancellation was issued under Section 45-IA of the Reserve Bank of India Act, 1934, for carrying on the business of a non-banking financial institution. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
On December 7, 2004, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s Interactive Financial Services Limited, Ahmedabad, for carrying on the business of a non-banking financial institution. The release cites Section 45-IA of the Reserve Bank of India Act, 1934 as the statutory basis and states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop NBFC activity and cannot continue as a non-banking financial institution after the cancellation. This directly affects the entity’s ability to conduct regulated lending/financial business and may impact customers or counterparties dealing with it in that capacity.
Regulatory Basis
- Section 45-IA 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
- 7 Dec 2004
- Effective From
- 7 Dec 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC