Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Oct 2018
Case Brief
RBI, using its powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of 30 NBFCs. The release lists each affected company and notes that, as a result, they shall not transact the business of a Non-Banking Financial Institution as defined in the Act.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of 30 named companies. The release states that these 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 30 named companies lose their NBFC registration and are barred from carrying on non-banking financial institution business. This directly affects their ability to continue regulated lending/finance activities as NBFCs.
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
- 2 Aug 2018
- Entities Affected
- 30
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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