Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
18 Feb 2005
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Vinayaka Sai Finvest Limited, with registered offices in Nizamabad and Hyderabad, on February 14, 2005. The cancellation was made under Section 45IA of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company can no longer carry on the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration issued to Vinayaka Sai Finvest Limited under Section 45IA of the RBI Act, 1934. The release states that the company was registered to carry on the business of a non-banking financial institution, and RBI has the power to cancel the registration certificate of an NBFC under this provision.
Operating Impact
Vinayaka Sai Finvest Limited loses its RBI registration and cannot continue NBFC business. The action affects the company directly and prevents further regulated non-banking financial activity under its existing certificate.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 14 Feb 2005
- Effective From
- 14 Feb 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC