Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
12 Oct 2022
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of four NBFCs under Section 45-IA(6) of the RBI Act, 1934: S.R.M. Properties And Finance Company Pvt. Ltd., North East Region Finservices Limited, Sowjenvee Finance Limited, and Opel Finance Limited. The order lists each company’s registered office, CoR number, and cancellation date. Following cancellation, the companies are prohibited from transacting the business of a Non-Banking Financial Institution under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration (CoR) of four non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934. The release lists the four affected companies and their CoR cancellation dates. As a consequence, 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 four companies must stop carrying on NBFC business. Customers and counterparties should treat them as no longer authorised to operate as Non-Banking Financial Institutions; any further financial services activity outside the statutory framework would be impermissible.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 1 Sept 2022
- Entities Affected
- 4
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to S.R.M. Properties And Finance Company Pvt. Ltd