Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Jul 2007
Case Brief
On July 20, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to Nilamagal Finance and Investments Private Limited, Tiruchengode. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the company is not permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Nilamagal Finance and Investments Private Limited, Tiruchengode under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been granted registration to carry on the business of a non-banking financial institution, and following cancellation it can no longer transact that business.
Operating Impact
The company must stop all non-banking financial institution business activities. This directly affects the NBFC and any counterparties or customers relying on its lending or finance operations.
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 Jul 2007
- Effective From
- 20 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC