Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
1 Aug 2008
Case Brief
On July 18, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Vasu Estates and Finance Private Limited (formerly Vasu Estates and Finance Limited), whose registered office was at Vijayawada. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934, because the company had opted to exit the business of a non-banking financial institution. As a result, the company cannot transact NBFC business any longer.
Why RBI Acted
RBI cancelled the Certificate of Registration granted to Vasu Estates and Finance Private Limited (formerly Vasu Estates and Finance Limited) because the company had opted to exit from the business of a non-banking financial institution. The cancellation was issued under Section 45-IA(6) of the Reserve Bank of India Act, 1934, and means the company can no longer carry on NBFC business.
Operating Impact
Vasu Estates and Finance Private Limited is no longer permitted to conduct non-banking financial institution business after the cancellation takes effect. Customers and counterparties should no longer treat it as an active NBFC for new transactions in that business line.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 18 Jul 2008
- Effective From
- 18 Jul 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC