Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Dec 2009
Case Brief
On November 18, 2009, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Lucknow Finance Company Limited, based in Renukoot, District Sonbhadra, Uttar Pradesh. The release says the company had voluntarily exited the business of a non-banking financial institution. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, and means the company can no longer carry on NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Lucknow Finance Company Limited, whose registered office was at P.O. Renukoot, District Sonbhadra, Uttar Pradesh, for carrying on the business of a non-banking financial institution. The release states that the cancellation was made because the company had voluntarily exited from the business. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, and after cancellation the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company is no longer permitted to transact business as a non-banking financial institution. This removes its ability to operate as an NBFC going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Nov 2009
- Effective From
- 18 Nov 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC