Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
25 May 2018
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of two Non-Banking Financial Companies: M/s Jay Kay Transporters and Financiers (P) Limited and M/s Jay Kay Credit & Investment (Private) Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934, and the release says the companies cannot transact the business of a Non-Banking Financial Institution after cancellation.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of M/s Jay Kay Transporters and Financiers (P) Limited and M/s Jay Kay Credit & Investment (Private) Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, these companies cannot transact the business of a Non-Banking Financial Institution as laid down under clause (a) of Section 45-I of the Act.
Operating Impact
Both companies are barred from carrying on NBFC business going forward. Counterparties and customers should treat them as no longer authorised to operate as non-banking financial institutions.
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
- 2 May 2018
- Effective From
- 2 May 2018
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Jay Kay Credit & Investment (Private) Limited