Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Dec 2024
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four companies: Marwah Finance Pvt Ltd, PVP Capital Limited, Rain Bow Finance India Ltd, and Ram Alloy Castings Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934. Following cancellation, the entities are prohibited from transacting business as non-banking financial institutions.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration of Marwah Finance Pvt Ltd, PVP Capital Limited, Rain Bow Finance India Ltd, and Ram Alloy Castings Private Limited. As a result, these companies cannot transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The four companies must stop carrying on NBFC business. Counterparties and customers should no longer treat them as authorised non-banking financial institutions; any activity undertaken as an NBFC would be unauthorised.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I(a) of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to PVP Capital Limited