Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
9 Sept 2008
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Vinay Credit Company Private Limited, whose registered office was in Visakhapatnam, on 8 August 2008. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the business of a non-banking financial institution. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration granted to Vinay Credit Company Private Limited under Section 45-IA(6) of the RBI Act, 1934. The stated reason was that the company had opted to exit from the business of a non-banking financial institution. As a result, it can no longer carry on that business.
Operating Impact
Vinay Credit Company Private Limited is barred from carrying on non-banking financial institution activity after the cancellation. Any ongoing NBFC business must stop, and customers/counterparties should no longer expect the company to operate as an NBFC.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 8 Aug 2008
- Effective From
- 8 Aug 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC