Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Sept 2005
Case Brief
On September 14, 2005, the Reserve Bank of India cancelled the Certificate of Registration granted to Pondicherry Nidhi Limited, whose registered office was in Pondichery. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, because the entity was carrying on the business of a non-banking financial institution. As a result, Pondicherry Nidhi Limited cannot transact that business going forward.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration of Pondicherry Nidhi Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the cancellation was for carrying on the business of a non-banking financial institution, and that after cancellation the company cannot transact the business of a non-banking financial institution.
Operating Impact
Pondicherry Nidhi Limited is barred from carrying on non-banking financial institution business after the cancellation takes effect. Customers and counterparties should not treat it as authorised to operate as an NBFC/Nidhi after the RBI action.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 14 Sept 2005
- Effective From
- 14 Sept 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC