Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Nov 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Rakuja Investments Private Limited on October 11, 2002. The cancellation was issued on October 7, 2010 under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted on October 11, 2002 to M/s. Rakuja Investments Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was for carrying on the business of a non-banking financial institution; it does not provide any additional factual allegation beyond the statutory basis for cancellation. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
M/s. Rakuja Investments Private Limited must stop transacting NBFC business. The cancellation prevents the company from continuing non-banking financial institution operations after the effective cancellation date.
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
- 7 Oct 2010
- Effective From
- 7 Oct 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC