Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Jan 2021
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of three NBFCs: Abhinav Hire Purchase Limited, Jupiter Management Services Private Limited, and N. E. Leasing and Finance Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following the cancellation, these companies cannot transact the business of a Non-Banking Financial Institution as defined in the Act.
Why RBI Acted
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of three companies: Abhinav Hire Purchase Limited, Jupiter Management Services Private Limited, and N. E. Leasing and Finance Private Limited. As a consequence, the above companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All three companies are barred from carrying on NBFC business going forward. Customers and counterparties should not treat them as authorised non-banking financial institutions, and any NBFC activity must cease.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 3
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to N. E. Leasing and Finance Private Limited