RBI cancels Certificate of Registration of One HFC

Case Brief

The Reserve Bank of India announced cancellation of the Certificate of Registration of a housing finance company under Section 29A(6) of the National Housing Bank Act, 1987. No company name or additional factual details were provided in the excerpt.

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

RBI exercised its powers under Section 29A(6) of the National Housing Bank Act, 1987 to cancel the Certificate of Registration (CoR) of one housing finance company. The release does not provide the company name or further factual basis for the cancellation.

Severity Assessment

Cancellation of a Certificate of Registration is a licence cancellation, which is severity 5.

Impact

The affected housing finance company can no longer operate as an RBI-registered housing finance company. This is a full adverse action with immediate operational consequences for the entity and its customers/counterparties.

Regulatory Basis

Section 29A (6) of the National Housing Bank Act, 1987