Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 May 2008
Case Brief
On April 11, 2008, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Murudeshwar Finance & Leasing Ltd. (formerly Murudeshwar Finance & Leasing Pvt. Ltd.), whose registered office was in Hubli. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the business of a non-banking financial institution. As a result, the company can no longer transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Murudeshwar Finance & Leasing Ltd. (formerly Murudeshwar Finance & Leasing Pvt. Ltd.) for carrying on the business of a non-banking financial institution. The release states that the company had opted to exit from the NBFC business, and RBI exercised its power under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the registration certificate.
Operating Impact
Murudeshwar Finance & Leasing Ltd. must stop carrying on non-banking financial institution business with immediate effect from the cancellation date. The company can no longer undertake NBFC transactions, and counterparties should treat it as no longer registered to conduct that business.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 11 Apr 2008
- Effective From
- 11 Apr 2008
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC