Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
6 Aug 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 28 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each company by name and office address, and states that they shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 28 non-banking financial companies listed in the release. The order states that the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 28 listed companies lose their RBI registration to operate as NBFCs and must stop transacting NBFC business. This affects the companies directly and prevents them from carrying on non-banking financial institution activities going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 27 Jun 2018
- Effective From
- 27 Jun 2018
- Entities Affected
- 28
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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