Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
19 Oct 2002
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Plus Finance Limited under Section 45-IA(6) of the RBI Act, 1934. Plus Finance Limited was registered at 44-B, Hotel Chalukya Annexe, Race Course Road, Bangalore-560 001. As a result, the company is not permitted to transact the business of a non-banking financial institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India exercised its powers under sub-section (6) of Section 45-IA of the RBI Act, 1934 to cancel the Certificate of Registration issued to Plus Finance Limited, which had been registered at Bangalore. The cancellation bars the company from transacting the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.
Operating Impact
Plus Finance Limited must stop carrying on NBFC business immediately and cannot legally continue its non-banking financial institution activities. Customers and counterparties dealing with the company are affected by the cessation of its regulated NBFC operations.
Regulatory Basis
- sub-section (6) of Section 45 IA 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
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC