Varaich Finance Limited: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

25 Feb 2019

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of 25 companies under Section 45-IA(6) of the RBI Act, 1934. The entities named include Anand Business Pvt. Ltd., Manisha Motor and General Finance Limited, Bridgestone Vyapaar Private Limited, and 22 others across Kolkata, New Delhi, Jaipur, Bengaluru, Hyderabad, and other locations. Following cancellation, the release states that 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.

Why RBI Acted

Licensing breach

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 25 named companies. The release states that, as a result, the 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 can no longer carry on NBFC business. Customers, borrowers, and counterparties dealing with these firms are impacted because the entities are prohibited from operating as non-banking financial institutions going forward.

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
Order Date: 4 Jan 2019
Effective From: 4 Jan 2019
Entities Affected: 25
Entity Role: Bulk Member
Entity Type: NBFC

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Varaich Finance Limited

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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