Action on Consumer credits and Hire Purchases
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration granted to Consumer Credits and Hire Purchases Limited, a non-banking financial company with its registered office in Kolencherry, Kerala. The action was taken under Section 45-IA(6) of the RBI 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 granted to M/s. Consumer credits and Hire Purchases Limited, whose registered office is at Kolencherry, Kerala, for carrying on the business of a non-banking financial institution. The press release cites Section 45-IA(6) of the RBI Act, 1934 as the statutory basis for cancellation. Following the cancellation, the company cannot transact the business of a non-banking financial institution.
Severity Assessment
Cancellation of an NBFC’s Certificate of Registration is a severity-5 action because it removes the entity’s ability to operate as a non-banking financial institution.
Consumer Credits and Hire Purchases Limited must stop carrying on NBFC business. The cancellation directly affects the company’s ability to operate, and counterparties/customers can no longer rely on it to undertake non-banking financial institution activities.
Published as Consumer credits and Hire Purchases Limited
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