Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Jun 2008
Case Brief
On May 26, 2008, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Lease Plan India Limited, whose registered office was at Karol Bagh, New Delhi. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, the company is not permitted to 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. Lease Plan India Limited under Section 45-IA(6) of the RBI Act, 1934. As a result of the cancellation, the company cannot transact the business of a non-banking financial institution. The release cites the RBI’s statutory power to cancel the registration certificate of an NBFC / non-banking financial company.
Operating Impact
M/s. Lease Plan India Limited must stop carrying on NBFC business and cannot transact as a non-banking financial institution. Customers and counterparties should no longer treat it as authorised to conduct such business.
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
- 26 May 2008
- Effective From
- 26 May 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC