Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Mar 2012
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Tamil Nadu Water Investment Company Ltd. on February 3, 2012. The registration, issued under Section 45-IA(6) of the RBI Act, 1934, was cancelled because the company had voluntarily exited from carrying on non-banking financial institution activities. As a result, the company is no longer permitted to transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. 07.00728 dated June 15, 2002, issued to Tamil Nadu Water Investment Company Ltd. under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had voluntarily exited from carrying on NBFI activities, and following cancellation it cannot transact the business of a non-banking financial institution.
Operating Impact
The company must stop all non-banking financial institution activity and cannot legally transact that business going forward. The effect is limited to the named company, with no broader customer or market-wide restriction described beyond the loss of its NBFI status.
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
- 3 Feb 2012
- Effective From
- 3 Feb 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC