Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Feb 2003
Case Brief
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration of Scotia Finance Private Limited, New Delhi, on January 30, 2003. The release states that the cancellation followed the company’s decision to exit the business of a non-banking financial institution. After the cancellation, the company is not permitted to carry on NBFC business under the RBI Act.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Scotia Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason is that the company opted to exit from the business of a non-banking financial institution. As a result, the company can no longer transact the business of a non-banking financial institution as defined under Section 45-I(a) of the RBI Act, 1934.
Operating Impact
Scotia Finance Private Limited cannot continue or resume NBFC activities after the cancellation of its Certificate of Registration. The restriction directly affects the company and its counterparties, since it is no longer authorised to transact non-banking financial institution business.
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
- 30 Jan 2003
- Effective From
- 30 Jan 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC