Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Jun 2012
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Matruka Investments Ltd., Bangalore, under Section 45-IA(6) of the RBI Act, 1934. The action was taken on supervisory grounds in relation to the company’s NBFI activities. As a result, Matruka Investments Ltd. is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. 13.00315 dated March 09, 1998 issued to Matruka Investments Ltd. The cancellation was stated to be on supervisory grounds, and was made under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release says the company had been carrying on the business of a non-banking financial institution, and after cancellation it cannot continue NBFI business.
Operating Impact
The company must stop all non-banking financial institution activities with immediate effect from the cancellation date. Customers and counterparties can no longer rely on it to conduct NBFI business.
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
- 1 Jun 2012
- Effective From
- 1 Jun 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC