Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Feb 2009
Case Brief
On January 19, 2009, the Reserve Bank of India cancelled the Certificate of Registration of M/s. Nilanshu Hire Purchase Ltd., whose registered office was at Ayodhya Nagar, Ujhani, Budaun. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, on the ground that the company had voluntarily exited the business of a non-banking financial institution. As a result, the company cannot transact NBFC business going forward.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Nilanshu Hire Purchase Ltd. under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had voluntarily exited from the business of a non-banking financial institution. Following cancellation, the company is no longer permitted to carry on non-banking financial institution business.
Operating Impact
The company loses its authorization to carry on non-banking financial institution business. This means it cannot continue NBFC activities after the cancellation date, and counterparties should no longer treat it as an RBI-registered NBFC.
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
- 19 Jan 2009
- Effective From
- 19 Jan 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC