Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Mar 2014
Case Brief
On February 17, 2014, the Reserve Bank of India cancelled the Certificate of Registration of Manchanda Finlease Private Limited, whose registered office is in Hyderabad, under Section 45-IA(6) of the RBI Act, 1934. RBI stated that the company had voluntarily exited from carrying on non-banking financial institution activities. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. B-09.00302 issued to Manchanda Finlease Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily exited from carrying on non-banking financial institution activities, and therefore the registration was cancelled. As a result, the company is no longer permitted to carry on the business of a non-banking financial institution.
Operating Impact
The company is barred from carrying on NBFC/NBFI business going forward. This removes its regulatory authorization to transact as a non-banking financial institution, affecting its operations and any related counterparties or customers dealing with such 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
- 17 Feb 2014
- Effective From
- 17 Feb 2014
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC