Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Nov 2004
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to M/s Royal Finance Limited, Ahmedabad, on November 1, 2004. The cancellation was made under Section 45-IA of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of M/s Royal Finance Limited, Ahmedabad, under Section 45-IA of the RBI Act, 1934. The release states that the registration had been granted for carrying on the business of a non-banking financial institution and, following cancellation, the company cannot transact that business.
Operating Impact
M/s Royal Finance Limited is prohibited from carrying on NBFC business after the cancellation takes effect. This directly affects the company’s operations and any customers or counterparties relying on its non-banking financial services.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 1 Nov 2004
- Effective From
- 1 Nov 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC