Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Feb 2008
Case Brief
On January 15, 2008, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Lotus Hire Purchase Limited, Jalandhar City, Punjab. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. After the cancellation, the firm is barred from transacting 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. Lotus Hire Purchase Limited, whose registered office was in Jalandhar City, Punjab. The action was taken in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following the cancellation, the company cannot carry on the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.
Operating Impact
M/s. Lotus Hire Purchase Limited must stop NBFC operations and cannot legally transact non-banking financial institution business going forward. The restriction directly affects the company’s regulated business activity and its customers/counterparties relying on NBFC services.
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
- 15 Jan 2008
- Effective From
- 15 Jan 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC