Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Aug 2018
Case Brief
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 30 companies. The order covers the listed entities and, after cancellation, they cannot transact the business of a non-banking financial institution as defined in Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of 30 named companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a consequence, the companies are no longer permitted to transact the business of a non-banking financial institution as defined in Section 45-I(a) of the RBI Act.
Operating Impact
The affected companies lose the ability to operate as NBFCs and must stop undertaking non-banking financial institution business. The restriction applies to all 30 named entities, with no indication of a temporary suspension or extension; the release states they shall not transact NBFC business going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 30
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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