Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Mar 2009
Case Brief
On February 05, 2009, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Kasturi Leasing & Financial Services Ltd. for carrying on the business of a non-banking financial institution. The press release says the company had voluntarily exited from the business, and RBI exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the registration. As a result, the company can no longer 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. Kasturi Leasing & Financial Services Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was made because the company had voluntarily exited from the business of a non-banking financial institution. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company is barred from carrying on non-banking financial institution business after cancellation of its registration. This primarily affects the company itself and any future non-banking financial activities it might have undertaken; the release does not mention customer-specific restitution or deadlines beyond the cancellation date.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 5 Feb 2009
- Effective From
- 5 Feb 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC