Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Sept 2004
Case Brief
On September 8, 2004, the Reserve Bank of India cancelled the certificate of registration granted to M/s. Kabsons Finance Limited, whose registered office is in Ameerpet, Hyderabad. The action was taken under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of an NBFC/non-banking financial institution. As a result, the company cannot carry on or transact 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. Kabsons Finance Limited, Hyderabad, under Section 45IA of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and after cancellation it cannot transact that business.
Operating Impact
Kabsons Finance Limited must stop conducting non-banking financial institution business immediately. Customers and counterparties can no longer rely on it to operate as an NBFC, and any further such activity would be outside the scope of its cancelled registration.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 8 Sept 2004
- Effective From
- 8 Sept 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC