Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Sept 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Maltrikrishna Finance Limited, a non-banking financial company with its registered office in Visakhapatnam. The action was taken under Section 45-IA(6) of the RBI Act, 1934 after the company opted to exit the business of a Non-Banking Financial Institution. As a result, the company can no longer transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Maltrikrishna Finance Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a Non-Banking Financial Institution, and therefore its registration to carry on that business was cancelled.
Operating Impact
Maltrikrishna Finance Limited is barred from conducting non-banking financial institution business going forward. Customers and counterparties should no longer treat it as an active NBFC for new business origination or continuation of NBFC activities.
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
- 21 Aug 2007
- Effective From
- 21 Aug 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC