Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Sept 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Paul Merchants Limited, whose registered office was in New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The release says the company had voluntarily exited the business of a non-banking financial institution. As a result of the cancellation, the company is no longer permitted to carry on or 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. Paul Merchants Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily exited from the business of a non-banking financial institution, and therefore the registration was cancelled. After cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
M/s. Paul Merchants Limited cannot continue as a non-banking financial institution after the cancellation. The action removes its ability to undertake NBFC business, with the effect applying from 14 September 2009.
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
- Order Date
- 14 Sept 2009
- Effective From
- 14 Sept 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC