Action on Nilamagal Finance and Investments
Case Brief
On July 20, 2007, the Reserve Bank of India cancelled the Certificate of Registration granted to Nilamagal Finance and Investments Private Limited, Tiruchengode. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As a result, the company is not permitted to transact the business of a non-banking financial institution.
The Reserve Bank of India cancelled the certificate of registration of Nilamagal Finance and Investments Private Limited, Tiruchengode under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been granted registration to carry on the business of a non-banking financial institution, and following cancellation it can no longer transact that business.
Severity Assessment
Cancellation of a Certificate of Registration is a full licence cancellation, which falls in severity 5.
The company must stop all non-banking financial institution business activities. This directly affects the NBFC and any counterparties or customers relying on its lending or finance operations.
Published as Nilamagal Finance and Investments Private Limited, Tiruchengode
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