PhonePe, Aditya Birla Finance Among 9 NBFCs Surrendering Certificate of Registration

The Reserve Bank of India (RBI) has announced the cancellation of the certificate of registration (CoR) for 31 non-banking financial companies (NBFCs) as of September 2025. 

Among these, 9 companies, including PhonePe Technology Services and Aditya Birla Finance, have voluntarily surrendered their registration for a range of reasons. This marks a significant development in the financial services sector, as several prominent players exit the NBFC industry.

PhonePe and Aditya Birla Finance Exit the NBFC Sector

PhonePe Technology Services voluntarily returned its NBFC-AA certificate to the RBI, effectively exiting the sector. Aditya Birla Finance also ceased its operations as an NBFC following its merger with the parent company. These exits represent a shift in strategy for both companies, as they move away from the NBFC business.

Additionally, other companies like The Ashok Construction & Investment Company and Smartlink Holdings have also had their certificates cancelled after ceasing to operate in the NBFC space.

RBI Restores Registration for Two NBFCs

On a more positive note, the RBI has restored the registration of two NBFCs, namely RBG Leasing and Credit and Yashila Investment and Finance Company. This decision followed a review of orders from appellate authorities and courts, with the regulator instructing the firms to comply with relevant guidelines and reporting norms.

Read More: Bajaj Finance Aims to Achieve ₹10 Lakh Crore Loan Book by FY29!

Nine NBFCs Voluntarily Surrender Registration

In total, 9 NBFCs voluntarily surrendered their certificates of registration to the RBI. These include PhonePe Technology Services, The Ashok Construction & Investment Company, and Smartlink Holdings. Companies like P.L. Finlease and Far East Software Services also had their registration cancelled, as they now meet the criteria for unregistered Core Investment Companies (CICs), which do not require formal registration.

Conclusion

The RBI’s decision to cancel the CoR of 31 NBFCs highlights ongoing regulatory actions within India’s financial services sector. The exit of high-profile companies like PhonePe Technology Services and Aditya Birla Finance signals a potential shift in the market, with these companies choosing to redirect their focus away from the NBFC business.

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

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