Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Oct 2002
Case Brief
RBI notified that it cancelled, as surrendered on October 26, 2002, the Certificate of Registration issued to Mahaan Hire Purchase and Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The registration had authorised the company to carry on business as a non-banking financial institution. Following the cancellation, the company is not permitted to transact NBFC business under the Act.
Why RBI Acted
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled as 'surrendered' the Certificate of Registration issued to Mahaan Hire Purchase and Finance Limited for carrying on the business of a Non-Banking Financial Institution. As a result, the company is prohibited from transacting NBFC business as defined under Section 45-I(a).
Operating Impact
Mahaan Hire Purchase and Finance Limited must stop NBFC activities and cannot legally undertake non-banking financial institution business going forward. Customers and counterparties should not treat it as a registered NBFC for regulated lending/finance operations.
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
- 26 Oct 2002
- Effective From
- 26 Oct 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC