Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 Aug 2020
Case Brief
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, RBI cancelled the Certificate of Registration of 19 companies. The named entities include MVA Finance Private Limited, Apka Sahyog Finance & Mercantile Private Limited, RHC Holding Private Limited, and others listed in the release. RBI also stated that these companies shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 19 companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The affected companies cannot continue or begin NBFC business after the cancellation of their CoR. This directly affects the 19 entities named in the release and any customers/counterparties relying on their NBFC operations.
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
- Entities Affected
- 19
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to Sri Janardhana Credits Limited
Shree Om Finvest Limited
NBFC
1 shared action
2 restrictions
Anant Hire Purchase Pvt Ltd
NBFC
1 shared action
1 restriction
Anukriti Leasing and Exports Private Limited
NBFC
1 shared action
1 restriction
Apka Sahyog Finance & Mercantile Private Limited (Presently known as E-2 Securities Private Limited)
NBFC
1 shared action
1 restriction
Bicharshil Traders Private Limited (Presently known as Bicharshil Traders Ltd)
NBFC
1 shared action
1 restriction