RBI cancels registration of 135 NBFCs; 13 others surrender licences
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The Reserve Bank of India (RBI) on Wednesday said it has cancelled the certificates of registration (CoR) of 135 non-banking financial companies (NBFCs), while 13 other NBFCs voluntarily surrendered their licences due to business exits, restructuring and other reasons.
The central bank said the registrations were cancelled under powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934. The affected entities include Express Fincap House Private Limited, Akshay Fiscal Services Ltd, Times Finance (P) Ltd, Jupiter Projects (P) Ltd, Jupiter Finvest Pvt Ltd, Essel Finance Business Loans Ltd and Citiwide Financial Services Ltd, among others.
A majority of the NBFCs whose registrations were cancelled are based in West Bengal, according to the RBI's list. The companies span a range of locations across the country, including Assam, Delhi, Tamil Nadu, Manipur and Madhya Pradesh, but Kolkata-based entities account for a significant portion of the cancellations.
The RBI did not provide company-specific reasons for the cancellation of the 135 registrations in its release. The move, however, forms part of the central bank's ongoing oversight of the NBFC sector, which has seen increased regulatory scrutiny in recent years.
13 NBFCs surrender licences
In a separate release, the RBI said 13 NBFCs surrendered their certificates of registration, following which the central bank cancelled their licences.
Six companies — J. Thomas Finance Pvt Ltd, Econ-Super Sales Pvt Ltd, Hitesha Finance and Investment Ltd, Tinnevelly Tuticorin Investments Ltd, Carnex Vinimay Pvt Ltd and Impact Leasing Private Ltd — surrendered their registrations after exiting the non-banking financial institution (NBFI) business.
Another company, Forerunner Capital Investments Ltd, surrendered its registration after meeting the criteria prescribed for an unregistered Core Investment Company (CIC), which does not require RBI registration.
The remaining six entities — Caspian Impact Investments Private Ltd, Hari Darshan Sales Private Ltd, Ivory Consultants Private Ltd, SKA Consultancy Services Private Ltd, Trishita Management Ltd and Suban Trades Ltd — ceased to be legal entities due to amalgamation, merger, dissolution or voluntary strike-off and therefore surrendered their licences.
The RBI said the cancellations in the case of the 13 companies followed the surrender of their registrations and were carried out in accordance with the provisions of the RBI Act.