Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Mar 2008
Case Brief
On February 28, 2008, the Reserve Bank of India cancelled the certificate of registration of M/s. Shree Kalyani Leasing & Finance Ltd. The company, formerly known as Shree Kalyani Leasing & Finance Private Limited, was registered at Udupi, Karnataka. RBI said the cancellation was under Section 45-IA(6) of the RBI Act, 1934, and was because the company had opted to exit the business of a non-banking financial institution. As a result, the company can no longer transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Shree Kalyani Leasing & Finance Ltd. for carrying on the business of a non-banking financial institution. The release states that the company had opted to exit from the business, and the cancellation was made under Section 45-IA(6) of the RBI Act, 1934.
Operating Impact
The company is no longer permitted to carry on or transact the business of a non-banking financial institution. The restriction directly affects the entity and prevents future NBFC operations; no specific customer-facing deadline is stated beyond the cancellation date.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 28 Feb 2008
- Effective From
- 28 Feb 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC