Certificate of Registration Cancelled as `surrendered'

Case Brief

The Reserve Bank of India notified that it has cancelled, as surrendered, the Certificate of Registration issued to Beeyamaar Finance Private Limited under Section 45-IA(6) of the RBI Act, 1934. The cancellation took effect on October 25, 2002. As a result, the company is not permitted to transact the business of a non-banking financial institution under the Act.

Action Snapshot

Primary Impact: License cancellation
Entity Type: NBFC
Location: Vijayawada, Andhra Pradesh
Order Date

25 Oct 2002

Effective From

25 Oct 2002

Entities Affected

1

Why RBI Acted

Licensing breach

Under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled, as 'surrendered' on October 25, 2002, the Certificate of Registration issued to Beeyamaar Finance Private Limited to carry on the business of a non-banking financial institution. The release states that the company can no longer transact the business of a non-banking financial institution as defined under Section 45-I(a).

Severity Assessment

Cancellation of the Certificate of Registration is a licensing action that fully removes the entity’s ability to operate as an NBFC, which falls in severity 5.

Impact

Beeyamaar Finance Private Limited loses the legal ability to operate as a non-banking financial institution. Customers and counterparties should not treat it as an authorised NBFC after the cancellation date.

Regulatory Basis

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

Restrictions & Effective Timeline

Effective From: 25 Oct 2002

Affected Entities

Beeyamaar Finance Private Limited
Published as Beeyamaar Finance Private Limited
NBFC · Primary