Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
1 Aug 2008
Case Brief
On July 7, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Real Lines Finance and Investments Limited (formerly Real Lines Finance and Investments Private Limited), whose registered office was in Hyderabad. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, because the company had chosen to exit the business of a non-banking financial institution. As a result, the company can no longer transact that business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Real Lines Finance and Investments Limited (formerly Real Lines Finance and Investments Private Limited) under Section 45-IA(6) of the RBI Act, 1934. The cancellation was issued because the company had opted to exit the business of a non-banking financial institution, after which it cannot transact that business.
Operating Impact
Real Lines Finance and Investments Limited is no longer permitted to carry on the business of a non-banking financial institution. This removes its ability to operate in its regulated NBFC business line and affects any counterparties or customers dealing with it in that capacity.
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
- 7 Jul 2008
- Effective From
- 7 Jul 2008
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- NBFC