Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 Jun 2012
Case Brief
On April 19, 2012, the Reserve Bank of India cancelled the Certificate of Registration issued to Sri Sai Siri Finance and Leasing Ltd. for carrying on non-banking financial institution activities. The release says the company had voluntarily exited from carrying on NBFI activities, and the cancellation was made under Section 45-IA(6) of the RBI Act, 1934. After cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. B-09.00176 dated March 01, 2005, issued to Sri Sai Siri Finance and Leasing Ltd. for carrying on the business of a non-banking financial institution. The release states that the company had voluntarily exited from carrying on NBFI activities. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934. Following cancellation, the company is barred from transacting the business of a non-banking financial institution.
Operating Impact
The company loses its RBI registration and cannot continue NBFC/NBFI business. This directly affects the firm’s ability to undertake regulated financial activities, while customers and counterparties should no longer treat it as authorised to operate as an NBFC.
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
- 19 Apr 2012
- Effective From
- 19 Apr 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC