Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
8 May 2004
Case Brief
The Reserve Bank of India cancelled, as surrendered, the registration certificate of Vulcan Leasing and Investments Limited, Bangalore, for carrying on business as a non-banking financial institution. RBI said the company had opted to exit the NBFC business, and the cancellation was made under Section 45-1A(6) of the RBI Act, 1934. The release also notes that the company has been prohibited from acceptance of deposits from the public under Section 45MB(1).
Why RBI Acted
RBI cancelled the registration certificate of Vulcan Leasing and Investments Limited as surrendered, after the company opted to exit from the business of a non-banking financial institution. The cancellation was made under Section 45-1A(6) of the RBI Act, 1934. The release also states that the company has been prohibited from accepting deposits from the public under Section 45MB(1).
Operating Impact
Vulcan Leasing and Investments Limited can no longer operate as an NBFC under the cancelled registration certificate, and it is prohibited from accepting deposits from the public. The action affects the company directly and limits its ability to take on public funds going forward.
Regulatory Basis
- Section 45 MB (1)
- Section 45-1A (6) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 20 Apr 2004
- Effective From
- 20 Apr 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC