Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 May 2014
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of three NBFCs: M/s Mona Finvest Private Limited, Jinvani Commercial Private Limited, and M/s Negus Mercantile Private Limited. The cancellations were issued under Section 45-IA(6) of the RBI Act, 1934 because they were carrying on the business of a non-banking financial institution. As a result, the companies are no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934 for carrying on the business of a non-banking financial institution. The companies named are Mona Finvest Private Limited, Jinvani Commercial Private Limited, and Negus Mercantile Private Limited, all based in Kolkata. After cancellation, they cannot transact the business of a non-banking financial institution.
Operating Impact
The affected companies must stop transacting non-banking financial institution business. This primarily impacts the three NBFCs themselves and any customers or counterparties relying on their lending or financial services operations.
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
- Effective From
- 16 Apr 2014
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Negus Mercantile Private Limited