Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Aug 2007
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Savera Credits Limited on July 27, 2007. The company, which had its registered office at 179, Delhi Road, Meerut, had voluntarily surrendered Certificate of Registration No. B.12.00285 dated July 26, 2006. RBI invoked Section 45-IA(6) of the Reserve Bank of India Act, 1934 for the cancellation. Following this action, Savera Credits Limited cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Savera Credits Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily surrendered Certificate of Registration No. B.12.00285 dated July 26, 2006, and therefore the registration was cancelled. As a result, the company cannot transact the business of a non-banking financial institution.
Operating Impact
Savera Credits Limited is no longer permitted to carry on non-banking financial institution business. The restriction is immediate upon cancellation, affecting the company’s ability to operate in its regulated NBFC business line.
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
- 27 Jul 2007
- Effective From
- 27 Jul 2007
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC