Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Jan 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s. Rangers Commercial Pvt. Ltd., whose registered office was in Jammu. The action was taken under Section 45-IA(6) of the RBI Act, 1934, after the company voluntarily exited the business of a non-banking financial institution. As a result, the company can no longer carry on 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. Rangers Commercial Pvt. Ltd. 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
The company is barred from conducting NBFC business going forward. This removes its regulatory permission to operate as a non-banking financial institution, with the immediate effect that it cannot transact NBFC business after the cancellation.
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
- 11 Nov 2008
- Effective From
- 11 Nov 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC