Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Nov 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 34 companies under Section 45-IA(6) of the RBI Act, 1934. The companies span several locations and include multiple finance/leasing entities, and the release states that they shall not transact the business of a Non-Banking Financial Institution under the Act. This is a full licence cancellation for the affected NBFCs.
Why RBI Acted
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, the RBI cancelled the Certificate of Registration of 34 companies. The release lists each company and its date of cancellation. As a result, the companies are no longer permitted to transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
All 34 listed companies must stop operating as NBFCs and cannot undertake non-banking financial institution business going forward. Customers and counterparties should treat them as no longer authorised for NBFC activity. The cancellation takes effect from the respective cancellation dates listed against each company.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 3 Oct 2018
- Entities Affected
- 34
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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