Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
15 Nov 2018
Case Brief
In a Section 45-IA(6) action under the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 33 companies that were operating as NBFCs. The release names each company and gives the cancellation dates. Following cancellation, the companies are barred from transacting the business of a non-banking financial institution as defined in the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificates of Registration of 33 companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each company and its CoR cancellation date. It also states that, as a result, the 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
All 33 affected companies must stop NBFC business operations with effect from the stated cancellation dates. Customers, counterparties, and borrowers dealing with these firms can no longer rely on them for regulated non-banking financial services after cancellation.
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
- Effective From
- 12 Sept 2018
- Entities Affected
- 33
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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