Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Sept 2010
Case Brief
The Reserve Bank of India cancelled the certificates of registration of M/s. Limia Finance & Investment Private Limited and M/s Rajesh Projects & Finance Limited, both registered to carry on non-banking financial institution business. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934. As a result, the companies are not permitted to transact NBFC business going forward.
Why RBI Acted
The Reserve Bank of India cancelled the certificates of registration granted to M/s. Limia Finance & Investment Private Limited and M/s Rajesh Projects & Finance Limited for carrying on the business of a non-banking financial institution. The press release states that, following cancellation of the registration certificate, the companies cannot transact the business of a non-banking financial institution. The action is stated to be under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
Both companies must stop carrying on non-banking financial institution business. The restriction is final unless separately reversed by the regulator, and it affects the companies, their customers, and counterparties dealing with NBFC services.
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
- 26 Sept 2000
- Effective From
- 12 Aug 2010
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Rajesh Projects & Finance Limited