RBI cancels Certificate of Registration

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of the NBFCs mentioned in the release under Section 45-IA(6) of the RBI Act, 1934. The release says the companies had opted to exit from the business of a non-banking financial institution, so the action is a licence cancellation rather than a penalty or operational restriction.

Action Snapshot

Primary Impact: License cancellation
Entity Type: NBFC
Action Type: License cancellation
Order Date

Unknown date

Effective From

Unknown date

Entities Affected

1

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the Certificate of Registration of the following non-banking financial companies (NBFCs) in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The stated reason is that the companies opted to exit from the business of a non-banking financial institution.

Severity Assessment

Cancellation of the Certificate of Registration is a full licence cancellation, which carries severity 5 regardless of any monetary amount.

Impact

The affected NBFCs can no longer operate as registered non-banking financial institutions. The cancellation is final for the entities covered by the order, and there is no forward-looking operational permission under the cancelled registration.

Regulatory Basis

Section 45-IA (6) of the Reserve Bank of India Act, 1934