Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
4 Nov 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies: M/s. Ramajyoti Credit & Investment Private Limited and M/s Mohanmeet Leasing Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are no longer permitted to carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to M/s. Ramajyoti Credit & Investment Private Limited and M/s Mohanmeet Leasing Private Limited for carrying on the business of a non-banking financial institution. The cancellations were issued under Section 45-IA(6) of the RBI Act, 1934. The release states that, following cancellation, the companies cannot conduct NBFC business.
Operating Impact
Both companies are barred from undertaking NBFC business after the cancellation of their registrations. The affected entities themselves must cease such activities, and customers/counterparties cannot rely on them for non-banking financial 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
- 23 Sept 2010
- Effective From
- 22 Sept 2010
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Mohanmeet Leasing Private Limited