Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Sept 2007
Case Brief
On 14 August 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to Metfam Industries Limited, whose registered office was in New Delhi, for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact non-banking financial business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Metfam Industries Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that after cancellation, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Metfam Industries Limited is barred from carrying on non-banking financial institution business going forward. The restriction directly affects the company and prevents it from undertaking NBFC 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
- 14 Aug 2007
- Effective From
- 14 Aug 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC