Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Oct 2012
Case Brief
On August 29, 2012, the Reserve Bank of India cancelled the Certificate of Registration No. B-09.00366 dated July 20, 2001, issued to Venkataraya Finance Private Limited, whose registered office was in Tanuku, Andhra Pradesh. The registration had authorized the company to carry on the business of a non-banking financial institution. RBI said the cancellation followed the company’s voluntary exit from NBFI activities and was exercised under Section 45-IA(6) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India cancelled Certificate of Registration No. B-09.00366 dated July 20, 2001, issued to Venkataraya Finance Private Limited for carrying on the business of a non-banking financial institution. The release states that the company had voluntarily exited from carrying on NBFI activities. The cancellation was made under Section 45-IA(6) of the RBI Act, 1934.
Operating Impact
Venkataraya Finance Private Limited can no longer transact the business of a non-banking financial institution. The company must cease NBFI operations following cancellation of its registration certificate; counterparties and customers should no longer rely on it as an RBI-registered NBFC/NBFI.
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
- 29 Aug 2012
- Effective From
- 29 Aug 2012
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC