Action on Royal Pacific Finance
Case Brief
The Reserve Bank of India cancelled the certificate of registration of M/s Royal Pacific Finance Private Limited on June 20, 2008. The action was taken under Section 45-IA(6) of the RBI Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the company cannot transact the business of a non-banking financial institution.
The Reserve Bank of India cancelled the certificate of registration granted to M/s Royal Pacific Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had been registered to carry on the business of a non-banking financial institution and, following cancellation, it cannot transact that business.
Severity Assessment
Cancellation of an NBFC’s certificate of registration is a full licence cancellation, which is severity 5.
M/s Royal Pacific Finance Private Limited is barred from carrying on NBFC business going forward. Any business activities requiring registration as a non-banking financial institution must stop, and counterparties should no longer rely on it for such regulated activities.
Published as M/s Royal Pacific Finance Private Limited
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