Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Dec 2022
Case Brief
The RBI cancelled the Certificate of Registration of two NBFCs under Section 45-IA(6) of the RBI Act, 1934. The affected entities are Nedumpillil Financial Company Limited and Bhagwan Hire Purchase Limited. With the cancellation, both companies are barred from transacting business as Non-Banking Financial Institutions under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration (CoR) of Nedumpillil Financial Company Limited and Bhagwan Hire Purchase Limited under Section 45-IA(6) of the RBI Act, 1934. Following cancellation, the companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act.
Operating Impact
Both companies must stop carrying on non-banking financial business. The cancellation affects the entities directly and removes their ability to operate as NBFCs going forward.
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
- Effective From
- 17 Nov 2022
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Nedumpillil Financial Company Limited