Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Nov 2018
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 32 companies under Section 45-IA(6) of the RBI Act, 1934. The release lists each affected company and states that, as a result, they shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 32 named companies. As a consequence, the companies are no longer permitted to transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Operating Impact
The 32 affected companies cannot continue or commence NBFC business unless otherwise permitted by law. Customers, counterparties, and other stakeholders should treat them as no longer authorised to conduct non-banking financial institution activity.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 32
- Entity Role
- Bulk Member
- Entity Type
- NBFC
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