Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Dec 2004
Case Brief
The Reserve Bank of India cancelled the certificate of registration issued to Manipal Finance Corporation Limited, whose registered office was at Manipal House, Manipal, Karnataka. The company had been carrying on the business of a non-banking financial institution. RBI said the cancellation was done under powers conferred by Section 45IA of the Reserve Bank of India Act, 1934, which governs registration and cancellation of NBFC certificates.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Manipal Finance Corporation Limited under Section 45IA of the RBI Act, 1934. The release states that the company was registered for carrying on the business of a non-banking financial institution, and that RBI has the power under Section 45IA to cancel the registration certificate of an NBFC.
Operating Impact
The company can no longer carry on NBFC business under the cancelled certificate. Any ongoing non-banking financial institution activities would have to stop unless permitted through some other lawful arrangement; the action directly affects the entity and its customers/counterparties.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 Dec 2004
- Effective From
- 20 Dec 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC