Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Jul 2008
Case Brief
The Reserve Bank of India cancelled the certificate of registration of M/s Royal Pacific Finance Private Limited on June 20, 2008. The action was taken under Section 45-IA(6) of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. 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 granted to M/s Royal Pacific Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution and, following cancellation, it cannot transact that business.
Operating Impact
M/s Royal Pacific Finance Private Limited is barred from carrying on NBFC business going forward. Any business activities requiring registration as a non-banking financial institution must stop, and counterparties should no longer rely on it for such regulated activities.
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
- 20 Jun 2008
- Effective From
- 20 Jun 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC