RBI Revokes Registration of 4 NBFCs as 4 Others Voluntarily Surrender Licences

The Reserve Bank of India (RBI) has withdrawn the registration of 4 non-banking financial companies based in West Bengal and Chandigarh, citing its authority under the RBI Act. 

In parallel, 4 additional NBFCs have given up their certificates for varied regulatory and operational reasons. The central bank has also imposed a monetary penalty on a co-operative bank for non-compliance with regulatory requirements.

Cancellation of Registration for 4 NBFCs

The RBI has cancelled the certificates of registration for Gem Investments & Trading Co Pvt Ltd, Vistar Financiers, Ambica Barter Pvt Ltd, and Shri Lakhavi Financial Services Limited.

These companies, located in West Bengal and Chandigarh, have been removed from the list of registered NBFCs under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The regulator stated that the action falls within its supervisory powers.

Voluntary Surrender of Certificates

4 other entities have surrendered their NBFC registrations for differing reasons. Yg Capital Limited exited the non-banking financial business, leading to its voluntary withdrawal. 

Intell Invofin India Private Limited relinquished its certificate after fulfilling conditions for classification as an unregistered Core Investment Company.

Gangotri Commodities & Finvest Pvt Ltd and Perkin Dealers Pvt Ltd surrendered their licences due to corporate restructuring events such as mergers, dissolution or voluntary strike-off.

Penalty Imposed on Co-operative Bank

Separately, the RBI has imposed a penalty of ₹13,000 on The Co-operative Urban Bank Limited in Parlakhemundi, Odisha. 

The action followed findings that the bank incurred capital expenditure without the required prior approval from the regulator and did not submit credit information to all registered credit information companies. 

The RBI clarified that the penalty relates to compliance shortcomings.

Read more: MeitY Alerts VPN Providers and Online Platforms Over Sites Exposing Personal Data of Indian Citizens.

Conclusion

The RBI’s recent actions highlight the continuing regulatory oversight of NBFCs and co-operative banks. The cancellations, voluntary surrenders and penalty underscore the importance of meeting statutory requirements, maintaining accurate reporting practices and aligning with the regulatory framework governing India’s financial sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal 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.