RBI cancels Certificate of Registration of One NBFC

Case Brief

The Reserve Bank of India has cancelled the Certificate of Registration of one NBFC under Section 45-IA(6) of the RBI Act, 1934. The excerpt provided does not include the name of the company or any additional details on the underlying grounds, but the action itself is a licence cancellation with immediate adverse regulatory effect.

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 exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration of the company. The release does not provide the company name or any further factual basis for the cancellation in the text provided.

Severity Assessment

Cancellation of a Certificate of Registration is a full licence cancellation and is severity 5.

Impact

The NBFC can no longer operate as a registered NBFC after cancellation of its Certificate of Registration. Any business dependent on that registration must stop, and customers/counterparties would be affected by the loss of regulated status.

Regulatory Basis

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