Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Jul 2024
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Polytex India Ltd, an NBFC, under Section 45-IA(6) of the RBI Act, 1934. The title attributes the action to irregular lending practices. As a CoR cancellation, this is a full licence-level action that stops the entity from operating as an NBFC.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the Reserve Bank cancelled the Certificate of Registration (CoR) of Polytex India Ltd, a Non-Banking Financial Company. The release title states the cancellation was due to irregular lending practices, but the body text itself only confirms the CoR cancellation and the statutory basis.
Operating Impact
Polytex India Ltd can no longer operate as an NBFC under the cancelled CoR. Any lending or other NBFC activities must cease, and counterparties/customers are affected by the loss of the entity’s regulated status.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC