Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Mar 2009
Case Brief
On February 13, 2009, the Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Micro Fin Securiteis Private Ltd. for carrying on the business of a non-banking financial institution. RBI cited the company’s voluntary exit from the NBFC business and acted under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact NBFC business.
Why RBI Acted
RBI cancelled the Certificate of Registration granted to M/s. Micro Fin Securiteis Private Ltd. under Section 45-IA(6) of the RBI Act, 1934 because the company had voluntarily exited from the business of a non-banking financial institution. The release states that, following cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop all business of a non-banking financial institution and cannot undertake NBFC transactions going forward. This primarily affects the company and any counterparties relying on its NBFC operations; no monetary penalty is mentioned.
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
- 13 Feb 2009
- Effective From
- 13 Feb 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC