Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Jun 2009
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Poorna Prajna Fincap Private Limited, Bangalore, under Section 45-IA(6) of the RBI Act, 1934. The release says the company had opted to exit the business of a non-banking financial institution, and after cancellation it cannot transact NBFC business. This is a licence cancellation rather than a temporary restriction.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Poorna Prajna Fincap Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore the registration was cancelled. The action means the company can no longer carry on the business of a non-banking financial institution.
Operating Impact
Poorna Prajna Fincap Private Limited is no longer permitted to conduct non-banking financial institution business. The cancellation has a permanent forward-looking effect unless the company obtains fresh regulatory approval under the applicable law.
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
- 18 May 2009
- Effective From
- 18 May 2009
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC