Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
27 Sept 2010
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to Shyamram Financial Services Pvt. Ltd. for carrying on the business of a non-banking financial institution. The release cites Section 45-IA(6) of the RBI Act, 1934 as the statutory basis. As a result, the company cannot transact the business of a non-banking financial institution from the cancellation date.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted on March 4, 1998 to Shyamram Financial Services Pvt. Ltd. for carrying on the business of a non-banking financial institution. The action is stated to be under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Operating Impact
Shyamram Financial Services Pvt. Ltd. must stop conducting non-banking financial institution business. The restriction affects the company directly and removes its ability to operate as an NBFC going forward.
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
- 26 Jul 2010
- Effective From
- 26 Jul 2010
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC