RBI Revokes Registration Of 150 NBFCs Under the RBI Act

The Reserve Bank of India (RBI) has cancelled the Certificates of Registration (CoR) of 150 non-banking financial companies (NBFCs), barring them from carrying out non-banking financial institution activities under the provisions of the RBI Act, 1934.

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In separate notifications issued during the week, the central bank said the registrations were cancelled under Section 45-IA (6) of the RBI Act. The affected entities are no longer permitted to undertake NBFC business operations.

The RBI stated that these companies “shall not transact the business of a Non-Banking Financial Institution” as defined under the Act.

Firms Across Multiple States Affected

A large number of the companies whose registrations were cancelled were based in West Bengal and Delhi. Entities from several other states, including Telangana, Karnataka, Tamil Nadu, Bihar, Haryana, Madhya Pradesh, and Rajasthan, also featured in the RBI’s notifications.

Among the Kolkata-based companies listed were Akin Vincom, Admire Vinimay, Blue Diamond Securities & Finance, and Taurus Ispat Private. Delhi-based entities included Goal Securities and Credits, MR Fincap Private, and Paras Fincap.

The RBI did not specify the individual reasons behind each cancellation in the notifications.

Seven NBFCs Surrender Licences

Apart from the cancellations, the central bank also revoked the registrations of seven NBFCs after the companies voluntarily surrendered their licences.

According to the RBI, four firms exited the non-banking financial institution business entirely. These included Ashoka Viniyoga and Guru Kirpa Finvest.

The central bank said two companies, R R Holdings Private Limited and Anjali Capfin Private Limited, no longer require RBI registration after fulfilling conditions applicable to unregistered Core Investment Companies (CICs).

In a separate development, the RBI cancelled the CoR of HDFC Holdings Limited after the company ceased to exist as a legal entity following amalgamation, merger, dissolution or voluntary strike-off.

Registration Restored For Jaipur-Based NBFC

The RBI also restored the Certificate of Registration of Jaipur-based Krishna Capfin after reviewing appellate and court orders related to the matter.

In its release, the central bank directed the company to comply with all applicable provisions of the RBI Act and ongoing regulatory reporting requirements.

The restoration came after judicial and appellate proceedings linked to the company’s registration status.

RBI Tightens Regulatory Oversight

The latest action forms part of the RBI’s broader regulatory oversight of the non-banking financial sector. Increased attention from the central bank on NBFC activities in recent years is seen in the form of stricter regulations and reporting norms.

NBFCs have a crucial role to play in the credit landscape of India due to the provision of lending and financing activities.

The RBI periodically inspects whether the NBFCs registered with the RBI comply with the regulatory guidelines, including minimum capital adequacy requirements, nature of business, and corporate governance norms.