Rain Bow Finance India Ltd

RBI cancelled the CoR of four NBFCs. The companies can no longer carry on NBFC business.

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.

• Section 45-IA (6) of the Reserve Bank of India Act, 1934
• Section 45-I(a) of the RBI Act, 1934

This RBI action affected 4 entities. This profile is linked as bulk member.

RBI imposed a ₹4 lakh penalty on Rain Bow Finance India Ltd., Chennai for non-compliance with prudential directions on provisioning and leverage ratio. The company was found to have failed standard asset provisioning requirements and to have a high leverage ratio.

The company must absorb the penalty and ensure future compliance with RBI’s provisioning and leverage requirements. There is no stated restriction on business operations, but the finding signals ongoing supervisory scrutiny and the need to correct prudential compliance gaps.

• clause (b) of sub-section (1) of section 58G
• clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934