RBI Cancels Registration of 36 NBFCs; 9 Others Surrender Licences

The Reserve Bank of India (RBI) announced that it has cancelled the Certificate of Registration (CoR) of 36 Non-Banking Financial Companies (NBFCs). The decision means these companies can no longer operate as NBFCs under the regulatory framework of the central bank.

The cancellations were carried out on different dates in February 2026, ranging from February 16 to February 24. Among the companies whose licences were cancelled are Excellence Broking & Finance (P) Ltd, Jibralter Traders Ltd, Nilima Enterprises Pvt. Ltd, Welplan Distributors Pvt. Ltd, Westport Export Pvt Ltd, and Adarsh Commercial Pvt Ltd. 

Several other firms such as Bahubali Leasing Limited, Harrison Trexim Pvt. Ltd, Pacific Management Pvt. Ltd, and Wintech Telecom Pvt. Ltd were also included in the list.

With the cancellation of their registrations, these entities are no longer permitted to conduct NBFC activities as defined under the RBI Act.

9 NBFCs Voluntarily Surrender Licences

Apart from the regulatory cancellations, 9 NBFCs voluntarily surrendered their Certificate of Registration granted by the RBI. These companies exited the NBFC business or underwent structural changes that made registration unnecessary.

Some companies, including Manglam Vanijya Private Limited, KKR India Asset Finance Private Limited, and Mechno Sales Agencies Pvt Ltd, surrendered their licences after deciding to exit the Non-Banking Financial Institution (NBFI) business.

In another case, Premier Ferro Alloys & Securities Limited surrendered its licence after meeting the criteria for an unregistered Core Investment Company (CIC), which does not require RBI registration.

Reasons Behind Licence Surrender and Cancellation

The surrender or cancellation of NBFC licences can occur for multiple reasons. Some companies may voluntarily exit the financial services business, while others may restructure operations, merge with other entities, or cease to exist as legal entities due to amalgamation or voluntary strike-off.

In other situations, firms may meet regulatory thresholds that no longer require them to maintain an NBFC licence, such as qualifying as an unregistered Core Investment Company.

Also Read: RBI Tightens Dividend Rules for Banks, Links Payouts to Capital Buffers and Bad Loans!

Conclusion

The RBI’s latest action highlights its ongoing efforts to maintain regulatory discipline in the NBFC sector. By cancelling registrations of inactive or non-compliant companies and allowing voluntary exits, the central bank aims to ensure a more transparent and well-regulated financial ecosystem.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.