Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Oct 2016
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of seven NBFCs under Section 45-IA(6) of the RBI Act, 1934. The release names the companies and specifies that, following cancellation, they cannot transact the business of a Non-Banking Financial Institution as defined in the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of seven non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The order lists the affected companies and states that, as a result, they cannot transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-IA of the RBI Act, 1934.
Operating Impact
All seven companies lose their NBFC registration and must stop carrying on non-banking financial institution business. Customers and counterparties are affected only to the extent those entities were conducting regulated NBFC activity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-IA of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 22 Jul 2016
- Effective From
- 22 Jul 2016
- Entities Affected
- 7
- Entity Role
- Primary
- Entity Type
- NBFC
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