Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Jan 2008
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The companies named in the release are M/s. New Theatres Pvt. Ltd. and M/s. Graphic Finance Ltd., both in Kolkata. RBI states that the cancellations were made because the companies had opted to exit the business of a Non-Banking Financial Institution. Following cancellation, the companies cannot carry on the business of a non-banking financial institution, though they remain obligated to repay any deposits as per the relevant contractual terms.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to two companies under Section 45-IA(6) of the RBI Act, 1934. The companies are stated to have opted to exit from the business of a Non-Banking Financial Institution. As a result of the cancellation, they cannot transact the business of a non-banking financial institution and must repay any deposits in accordance with the terms and conditions of the deposit contract.
Operating Impact
The two companies can no longer operate as non-banking financial institutions. Any existing depositors remain protected to the extent of contract terms, as the companies must still repay deposits if any. The action affects the two named entities and takes effect from the respective cancellation dates listed in the release.
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
- 15 Oct 1510
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. New Theatres Pvt. Ltd