Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
3 Jun 2014
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies: Siber Financial Services Private Limited, Sri Vishnu Finance & Investment Private Limited, and Margdarsi Investment and Leasing Company Private Limited. The action was taken under Section 45-IA(6) of the RBI Act, 1934 for carrying on the business of a non-banking financial institution. As a result, the companies cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of three non-banking financial companies under Section 45-IA(6) of the RBI Act, 1934 for carrying on the business of a non-banking financial institution. The release states that after cancellation, the companies cannot transact the business of a non-banking financial institution.
Operating Impact
The three NBFCs are barred from conducting non-banking financial institution business from the dates of cancellation. This affects their ability to lend or otherwise operate as registered NBFCs, and any continued NBFC activity would be impermissible.
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
- Effective From
- 30 Apr 2014
- Entities Affected
- 3
- Entity Role
- Primary
- Entity Type
- NBFC
Related Entities
Entities similar to Siber Financial Services Private Limited