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M/s The Metropolitan Finance Private Limited (presently known as The Metropolitan Finance Limited)

NBFCJammu, Jammu and Kashmir

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

S5

Published by RBI

19 Apr 2018

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of two non-banking financial companies: M/s The Metropolitan Finance Private Limited (presently known as The Metropolitan Finance Limited) and M/s Singhland Investments Limited (previously known as M/s Baba Finance Private Limited). The action was taken under Section 45-IA(6) of the RBI Act, 1934. The press release does not disclose a detailed misconduct narrative, but it makes clear that the companies are no longer permitted to transact the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the certificate of registration of two non-banking financial companies in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The named companies are M/s The Metropolitan Finance Private Limited (presently known as The Metropolitan Finance Limited) and M/s Singhland Investments Limited (previously known as M/s Baba Finance Private Limited). The release does not state the underlying factual breaches or reasons beyond the statutory cancellation of registration, and notes that after cancellation they cannot transact business as a non-banking financial institution under Section 45-I(a) of the Act.

Operating Impact

The two NBFCs are barred from carrying on non-banking financial institution business going forward. Borrowers, counterparties, and customers should expect the firms to cease regulated NBFC operations, subject to any separate legal or contractual wind-down arrangements.

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
19 Dec 2017
Effective From
16 Mar 2018
Entities Affected
2
Entity Role
Primary
Entity Type
NBFC

Related Entities

Entities similar to M/s The Metropolitan Finance Private Limited (presently known as The Metropolitan Finance Limited)

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  1. M/s Singhland Investments Limited (previously known as M/s Baba Finance Private Limited)

    NBFC · Jammu, Jammu and Kashmir

    1 shared action

    1 restriction