Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Dec 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities are NBFCs, including firms with addresses in Kolkata, Howrah, Mathura, Jabalpur, and New Delhi. Following cancellation, they are not allowed to 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 powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration (CoR) of 32 companies registered as non-banking financial companies. As a result, these entities are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The affected companies must stop carrying on NBFC business and cannot undertake non-banking financial institution activities. Customers and counterparties should not treat them as registered NBFCs going forward. The action is effective from the respective cancellation dates listed for each company in the release.
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
- Effective From
- 5 Nov 2018
- Entities Affected
- 32
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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