Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Mar 2024
Case Brief
The Reserve Bank of India has cancelled the Certificate of Registration of four NBFCs under Section 45-IA(6) of the RBI Act, 1934. The affected entities are Nimisha Finance India Private Limited, R.M.B. Finance Company Limited, Suyash Finovest Pvt Ltd, and Kamdhar Leasing and Finance Limited. Following cancellation, these companies are not permitted to transact the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of four companies: Nimisha Finance India Private Limited, R.M.B. Finance Company Limited, Suyash Finovest Pvt Ltd, and Kamdhar Leasing and Finance Limited. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, and the companies are barred from transacting the business of a Non-Banking Financial Institution under Section 45-I(a).
Operating Impact
The four companies must cease NBFC საქმიან operations and cannot legally continue non-banking financial institution business. Customers and counterparties dealing with them as NBFCs are affected by the loss of regulatory permission; the order is effective from the respective cancellation dates stated in the release.
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
- Effective From
- 8 Feb 2024
- Entities Affected
- 4
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to R.M.B. Finance Company Limited