Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Jan 2019
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of 31 NBFCs under Section 45-IA(6) of the RBI Act, 1934. The order names each affected company and records the date on which its CoR was cancelled. Following the cancellation, these entities cannot transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration (CoR) of 31 named companies. The release lists each company along with its registered office and date of cancellation, and states that the above companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The 31 named companies lose their authority to operate as NBFCs and must stop carrying on non-banking financial institution business. Customers and counterparties should not rely on these entities for new NBFC services, and any further activity in that capacity would be impermissible.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 31
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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