Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Feb 2008
Case Brief
The Reserve Bank of India cancelled the certificate of registration granted to VBC Finance & Leasing Limited, whose registered office was in Hyderabad, under Section 45-IA(6) of the RBI Act, 1934. 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 the certificate of registration of VBC Finance & Leasing Limited under Section 45-IA(6) of the RBI Act, 1934. The release does not specify the underlying factual violation beyond the statutory cancellation of the NBFC registration, but states that after cancellation the company cannot transact the business of a non-banking financial institution.
Operating Impact
VBC Finance & Leasing Limited must stop carrying on NBFC business immediately after the cancellation. Customers and counterparties can no longer rely on it to conduct non-banking financial institution activities.
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
- 15 Jan 2008
- Effective From
- 15 Jan 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC