Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Dec 2002
Case Brief
The Reserve Bank of India, exercising powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the certificate of registration issued to Sree Lalithamba Auto and General Finance Private Limited, 3-2-392 and 3-2-393, Budhvarpet, Bus Stand Road, Nirmal, Andhra Pradesh, after it was surrendered on December 16, 2002. As a result, the company is no longer authorised to transact the business of a non-banking financial institution under Section 45-IA of the Act.
Why RBI Acted
Under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled, as surrendered on December 16, 2002, the certificate of registration issued to Sree Lalithamba Auto and General Finance Private Limited for carrying on business as a non-banking financial institution. The company is therefore not permitted to transact NBFC business as defined under Section 45-IA(a).
Operating Impact
The company cannot conduct NBFC business going forward. This affects the company’s ability to accept or deploy funds in its regulated capacity and removes its registration status with RBI. There is no stated monetary penalty or compliance deadline beyond the cancellation itself.
Regulatory Basis
- Section 45 IA (6) of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45 IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 16 Dec 2002
- Effective From
- 16 Dec 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC