RBI cancels Certificate of Registration of four NBFCs

Jul 12, 2022 07:00 pm

The Reserve Bank of India today exercising its power cancelled licences of four NBFCs under Section 45-IA (6) of the Reserve Bank of India Act, 1934.

Kanva Shree Credit Private Limited(formerly known as MCI Leasing Private Limited) based in Bengaluru, Karnataka, Williamson Magor & Co. Ltd. based in Kolkata, West Bengal, Galaxy Capital Finance Limited based in Kanpur, Uttar Pradesh and SRS Finance Limited based in Faridabad, Haryana were the NBFCs whose license was cancelled.

RBI cancels a certificate of registration granted to a non-banking financial company under this section if such company:

(i) ceases to carry on the business of a non-banking financial institution in India

(ii) has failed to comply with any condition subject to which the certificate of registration had been issued to it; or

(iii) at any time fails to fulfil any of the conditions referred to in clauses (d) to (g) of sub-section (4); or

(iv) fails

(a) to comply with any direction issued by the Bank under the provisions of this Chapter; or

(b) to maintain accounts in accordance with the requirements of any law or any direction or order issued by the Bank under the provisions of this Chapter; or

(c) to submit or offer for inspection its books of account and other relevant documents when so demanded by an inspecting authority of the Bank; or

(v) has been prohibited from accepting deposit by an order made by the Bank under the provisions of this Chapter and such order has been in force for a period of not less than three months: Provided that before cancelling a certificate of registration on the ground that the non-banking financial company has failed to company with the provisions of clause (ii) or has failed to fulfil any of the conditions referred to in clause (iii) the Bank, unless it is of the opinion that the delay in cancelling the certificate of registration shall be prejudicial to public interest or the interest of the depositors or the non-banking financial company, shall give an opportunity to such company on such term as the Bank may specify for taking necessary steps to comply with such provision or fulfilment of such condition: Provided further that before making any order of cancellation of certificate of registration, such company shall be given a reasonable opportunity of being heard.