Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Aug 2017
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies: M/s S.R.F. Hire Purchase Pvt. Ltd. and M/s Mitter Finance Company Limited. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the companies are barred from transacting business as non-banking financial institutions under Section 45-I(a) of the Act.
Why RBI Acted
The RBI cancelled the Certificate of Registration of M/s S.R.F. Hire Purchase Pvt. Ltd. and M/s Mitter Finance Company Limited in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that, following cancellation of registration, these companies cannot transact the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.
Operating Impact
Both NBFCs must stop carrying on non-banking financial institution activity. Depositors, borrowers, and other counterparties can no longer treat them as RBI-registered NBFCs for fresh business.
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
- 15 Jun 2017
- Effective From
- 15 Jun 2017
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to M/s S.R.F. Hire Purchase Pvt. Ltd