Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
11 Mar 2020
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of two companies under Section 45-IA(6) of the RBI Act, 1934: Sahayog Enterprises Private Limited and Sneha Agencies Pvt. Ltd. The press release says that, following cancellation, the companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act. This is a full licensing action affecting both entities.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of Sahayog Enterprises Private Limited and Sneha Agencies Pvt. Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that, as a result, the two 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
Both companies lose the legal ability to operate as non-banking financial institutions. They must stop NBFC საქმიანity immediately and cannot undertake NBFC business going forward; counterparties and customers should not rely on them for regulated lending/financial activity.
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
- 30 Jan 2020
- Entities Affected
- 2
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Sahayog Enterprises Private Limited