Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Jun 2008
Case Brief
On May 20, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Microland Investments Private Limited, whose registered office was at No.1B, Ecospace, Belandur Outer Ring Road, Bangalore. The cancellation was issued 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 cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Microland Investments Private 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 following cancellation it cannot transact such business.
Operating Impact
Microland Investments Private Limited can no longer carry on NBFC business after cancellation of its registration certificate. The restriction applies to the company itself and affects its ability to undertake non-banking financial institution activities going forward.
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
- 20 May 2008
- Effective From
- 20 May 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC