Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 May 2010
Case Brief
The Reserve Bank of India, by order dated February 25, 2010, cancelled the Certificate of Registration of Saibala Credits Private Limited, Chennai, which had been granted for carrying on the business of a non-banking financial institution. The release says the company chose to exit the business, and the cancellation was made under Section 45-IA(6) of the RBI Act, 1934. As a result, the company is no longer permitted to transact NBFC business.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Saibala Credits Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, and therefore its registration was cancelled. After cancellation, the company can no longer transact the business of a non-banking financial institution.
Operating Impact
Saibala Credits Private Limited cannot carry on or transact non-banking financial institution business after the cancellation. The restriction affects the company directly and prevents any further NBFC operations.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Feb 2010
- Effective From
- 25 Feb 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC