Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Feb 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Padmavati Financial Services Ltd., whose registered office was at 28, Hastings Road, Allahabad. The action was taken under Section 45-IA(6) of the RBI Act, 1934, because the company had voluntarily exited the business of a non-banking financial institution. After cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Padmavati Financial Services Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was because the company had voluntarily exited from the business of a non-banking financial institution.
Operating Impact
M/s. Padmavati Financial Services Ltd. is no longer permitted to carry on NBFC/non-banking financial institution business. The company must cease such activities; the order primarily affects the company itself and any counterparties relying on its ability to operate as a 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
- 15 Jan 2009
- Effective From
- 15 Jan 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC