Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Oct 2007
Case Brief
On July 9, 2007, the Reserve Bank of India cancelled the certificate of registration of M/s. Urmil Mutual Benefits Limited, New Delhi, which had been granted for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the entity is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to M/s. Urmil Mutual Benefits Limited, New Delhi, under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution, and after cancellation it cannot transact that business.
Operating Impact
The company must stop carrying on non-banking financial institution activities. The restriction directly affects the entity and any customers or counterparties relying on its NBFC operations, as it can no longer legally transact that business from the effective date stated in the release.
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
- 9 Jul 2007
- Effective From
- 9 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC