Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 May 2018
Case Brief
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificates of Registration of M/s Jagannatha Financial Services Limited, M/s SCF Finance Limited, and M/s Mansar Finance Limited. The cancellation means the three companies are barred from transacting the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration of M/s Jagannatha Financial Services Limited, M/s SCF Finance Limited, and M/s Mansar Finance Limited. As a result, these companies are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under the RBI Act.
Operating Impact
The three NBFCs must stop carrying on non-banking financial business. Depositors, borrowers, and counterparties should no longer treat them as authorised NBFCs for regulated financial activities.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 13 Apr 2018
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Mansar Finance Limited