Certificate of Registration Cancelled

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration issued to Plus Finance Limited under Section 45-IA(6) of the RBI Act, 1934. Plus Finance Limited was registered at 44-B, Hotel Chalukya Annexe, Race Course Road, Bangalore-560 001. As a result, the company is not permitted to transact the business of a non-banking financial institution under the RBI Act.

Action Snapshot

Primary Impact: License cancellation
Entity Type: NBFC
Location: Bangalore, Karnataka
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 sub-section (6) of Section 45-IA of the RBI Act, 1934 to cancel the Certificate of Registration issued to Plus Finance Limited, which had been registered at Bangalore. The cancellation bars the company from transacting the business of a non-banking financial institution as defined under Section 45-I(a) of the Act.

Severity Assessment

Cancellation of an NBFC certificate of registration is a licence cancellation, which carries severity 5.

Impact

Plus Finance Limited must stop carrying on NBFC business immediately and cannot legally continue its non-banking financial institution activities. Customers and counterparties dealing with the company are affected by the cessation of its regulated NBFC operations.

Regulatory Basis

sub-section (6) of Section 45 IA of the Reserve Bank of India Act, 1934
Clause (a) of Section 45 I of the Reserve Bank of India Act, 1934

Affected Entities

Plus Finance Limited
Published as Plus Finance Limited
NBFC · Primary