Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Feb 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Pasco Motor Traders & Financiers (P) Ltd., Chandigarh, on 25 November 2009. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following the cancellation, the company is barred from transacting 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. Pasco Motor Traders & Financiers (P) Ltd. under Section 45-IA(6) of the RBI Act, 1934. The company had been carrying on the business of a non-banking financial institution; as a result of the cancellation, it can no longer transact that business.
Operating Impact
The company must stop NBFC business activities and cannot accept or conduct transactions in that capacity. The restriction directly affects the firm and its customers/counterparties dealing with it as a non-banking financial institution.
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
- 25 Nov 2009
- Effective From
- 25 Nov 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC