Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 Nov 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 28 companies under Section 45-IA(6) of the RBI Act, 1934. The entities are various NBFCs/finance and investment companies, and the order states that they shall not transact the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 28 companies. The listed entities included various NBFCs/finance and investment companies across Delhi, West Bengal, Punjab, Chandigarh, Telangana and Uttarakhand. As a result, 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
The affected companies lose their NBFC registration and cannot carry on non-banking financial business going forward. Customers, borrowers, and counterparties should no longer treat these entities as authorized 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
- Entities Affected
- 28
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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