Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
20 Oct 2010
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of three companies: M/s. R.D. Polymers Private Limited, M/s. Satvik Bars Private Limited, and M/s. R.S. Brothers Leasing & Investment Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, these companies cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to three companies under Section 45-IA(6) of the RBI Act, 1934. Following cancellation, the companies cannot transact the business of a non-banking financial institution as defined in Section 45-I(a) of the Act.
Operating Impact
The three companies are barred from carrying on NBFC business going forward. This affects their ability to accept or deploy funds in the manner of a non-banking financial institution, and any such activity must cease immediately from the cancellation date (September 9, 2010).
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
- 9 Sept 2010
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s. R.S.Brothers Leasing & Investment Private Limited