Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Aug 2002
Case Brief
The Reserve Bank of India, using its powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of Shravani Financial Services Private Limited (formerly Pesala Financial Services Limited) on August 26, 2002. The company, based in Hyderabad, is therefore barred from carrying on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Shravani Financial Services Private Limited (formerly Pesala Financial Services Limited) under Section 45-IA(6) of the RBI Act, 1934. The release states that, as a result, the company cannot transact the business of a non-banking financial institution as defined under Section 45-I(a).
Operating Impact
Shravani Financial Services Private Limited can no longer operate as a non-banking financial institution. Customers, counterparties, and other stakeholders cannot rely on it for NBFC activities after the cancellation date of August 26, 2002.
Regulatory Basis
- Section 45 IA(6) of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 26 Aug 2002
- Effective From
- 26 Aug 2002
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Pesala Financial Services Limited