Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 Aug 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 30 non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The named entities span multiple locations across India, and the order states that 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, as a result, these entities shall not transact the business of a Non-Banking Financial Institution as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Operating Impact
All 30 affected companies lose their NBFC registration and cannot carry on non-banking financial institution business going forward. Customers and counterparties should expect those entities to cease NBFC operations, subject to any applicable wind-down or regulatory directions.
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
- 30
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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