Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Apr 2017
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four NBFCs: M/s Mumbai Discount Finance Private Limited, M/s Sanjay Villa Pvt. Ltd. (presently M/s BISWA Microfinance Pvt. Ltd.), M/s Multani Motor Finance Limited, and M/s Jain Sons Marketing and Investment Limited. The cancellations were made under Section 45-IA(6) of the RBI Act, 1934. Following cancellation, the companies are not permitted to transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration of four Non-Banking Financial Companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The listed entities are M/s Mumbai Discount Finance Private Limited, M/s Sanjay Villa Pvt. Ltd. (presently M/s BISWA Microfinance Pvt. Ltd.), M/s Multani Motor Finance Limited, and M/s Jain Sons Marketing and Investment Limited. As a result, these companies cannot carry on the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All four named companies are barred from carrying on NBFC business going forward. Customers and counterparties should not rely on them for regulated non-banking financial services after the cancellation dates.
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
- Effective From
- 20 Apr 2015
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Sanjay Villa Pvt. Ltd. (Presently M/s BISWA Microfinance Pvt. Ltd.)