Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Jul 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of five non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The affected entities are Jahangirabad Finance Company Private Limited, A H P Motor Finance Private Limited, Onam Trading & Investment Private Limited, Arogya Dhan Varsha Finance & Investment Pvt Ltd, and Protchem Finance Limited. As a result, these companies cannot transact the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of five non-banking financial companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The listed companies are therefore no longer permitted to transact the business of a non-banking financial institution under Section 45-I(a) of the Act.
Operating Impact
The five named NBFCs lose their RBI registration and may not carry on NBFC business. This directly affects their ability to accept/continue regulated non-banking financial activities and requires them to cease operating as NBFCs from the cancellation dates stated in the order.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 16 May 2016
- Effective From
- 1 Jul 2016
- Entities Affected
- 5
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Jahangirabad Finance Company Private Limited