Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Mar 2023
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of M/s Rhino Finance Private Limited, a non-banking financial company, under Section 45-IA(6) of the RBI Act, 1934. The title of the release states that the action was taken because of irregular lending practices. This is a licence-style enforcement action that stops the NBFC from operating as a registered NBFC.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration issued to M/s Rhino Finance Private Limited, a non-banking financial company. The full text provided does not elaborate further, but the title states the cancellation was due to irregular lending practices.
Operating Impact
M/s Rhino Finance Private Limited can no longer operate as an RBI-registered NBFC. The cancellation affects the company directly and may also affect borrowers and counterparties relying on its NBFC status; any continued financial activity would have to comply with the consequences of the cancellation and applicable law.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC