Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
10 Mar 2017
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of six non-banking financial companies listed in the release, exercising powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Once cancelled, these entities cannot transact the business of a non-banking financial institution under the Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration (CoR) of six non-banking financial companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release states that, following cancellation, these companies cannot transact the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the Act.
Operating Impact
The six named NBFCs lose the legal authority to operate as non-banking financial institutions. They must stop NBFC activity, and counterparties should not treat them as authorized NBFCs after the cancellation dates stated in the order.
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
- 12 Jan 2017
- Effective From
- 12 Jan 2017
- Entities Affected
- 6
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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