Action on Mettur Finance
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 30 NBFCs named in the release, acting under Section 45-IA(6) of the RBI Act, 1934. The named firms include Mettur Finance Limited, Veer Motor Finance Private Limited, Robinson Holdings (P) Ltd., and others. Following cancellation, the release expressly says these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration (CoR) of 30 named companies. The release states that, as a result, these companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of a Certificate of Registration is a licence cancellation, which is a severity 5 action regardless of the absence of a monetary penalty.
The named companies lose their authority to operate as NBFCs and must stop transacting NBFC business. The action affects the 30 entities listed in the release; any ongoing lending or other NBFC activities must cease, and counterparties should not treat them as registered NBFCs going forward.
Published as Veer Motor Finance Private Limited
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