Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Oct 2004
Case Brief
On October 23, 2004, the Reserve Bank of India cancelled the Certificate of Registration granted to Sri Selvanarayana Finance Ltd. for carrying on the business of a non-banking financial institution. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Sri Selvanarayana Finance Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered for carrying on the business of a non-banking financial institution, and following cancellation it cannot transact that business.
Operating Impact
Sri Selvanarayana Finance Ltd. is barred from conducting NBFC business going forward. This directly affects the company’s ability to operate as a non-banking financial institution and removes its regulatory permission to carry on that business.
Regulatory Basis
- Section 45-IA(6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 23 Oct 2004
- Effective From
- 23 Oct 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC