Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
2 Dec 2024
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration issued to Zavron Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. This is a licensing action against an NBFC and results in the entity losing its registration to operate as an NBFC. The release title indicates the reason was irregular lending practices, though the body text only states the cancellation and the statutory basis.
Why RBI Acted
The Reserve Bank of India, in exercise of powers under Section 45-IA(6) of the RBI Act, 1934, cancelled the Certificate of Registration issued to Zavron Finance Private Limited, a Non-Banking Financial Company. The release title attributes the cancellation to irregular lending practices, but the body text itself only confirms the cancellation under Section 45-IA(6).
Operating Impact
Zavron Finance Private Limited can no longer operate as an NBFC under its cancelled CoR. The company loses its regulatory permission to conduct NBFC business, and any ongoing lending or financial activities would need to cease or be wound down in line with applicable law.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC