RBI Cancels Registrations of 150 NBFCs Across Multiple States

The Reserve Bank of India (RBI) has cancelled the Certificates of Registration (CoR) of 150 non-banking financial companies (NBFCs) under Section 45-IA (6) of the RBI Act, 1934, as per news reports.  

The decision means these entities can no longer carry out non-banking financial institution business. 

The RBI issued the notifications this week. The cancelled firms were involved in activities such as lending, investment, leasing, and other finance-related services generally undertaken by NBFCs. 

Majority of Firms from Delhi and West Bengal 

Most of the affected companies were registered in Delhi and West Bengal. According to the RBI list, around 75 companies were registered in West Bengal, mainly in Kolkata and nearby areas, while close to 67 firms were registered in Delhi. 

Companies from Telangana, Karnataka, Tamil Nadu, Bihar, Haryana, Madhya Pradesh and Rajasthan also featured in the list released by the central bank. 

Among the firms whose registrations were cancelled were Kolkata-based Akin Vincom, Admire Vinimay, Blue Diamond Securities & Finance, and Taurus Ispat Private. Delhi-based Goal Securities and Credits, MR Fincap Private and Paras Fincap were also included. 

RBI Cites Provisions Under RBI Act 

In its notification, the RBI said the companies whose registrations were cancelled “shall not transact the business of a Non-Banking Financial Institution” under the provisions of the RBI Act. 

NBFCs provide services such as loans, investments and financing activities but do not hold banking licences. They are regulated separately by the RBI under the Reserve Bank of India Act, 1934. 

The cancellation of registration prevents these firms from continuing any regulated NBFC operations. 

7 NBFCs Voluntarily Surrender Licences 

In separate notifications, the RBI said 7 NBFCs surrendered their registrations voluntarily. 4 firms, including Ashoka Viniyoga and Guru Kirpa Finvest, exited the non-banking financial institution business. 

R R Holdings Private Limited and Anjali Capfin Private Limited no longer required registration after meeting conditions applicable to unregistered Core Investment Companies (CICs), according to the RBI. 

The central bank also cancelled the CoR of HDFC Holdings Limited after the company ceased to exist following amalgamation, merger, dissolution or voluntary strike-off. 

Registration Restored for Jaipur Firm 

In another notification, the RBI restored the registration of Jaipur-based Krishna Capfin after appellate and court orders. The company has been directed to comply with regulatory and reporting requirements going forward. 

Some of the Companies in the RBI notification are mentioned below: 

Read More: Maharashtra Government Cuts VAT on ATF to 7% from 18% Amid High Jet Fuel Prices! 

Conclusion  

The cancellation of registrations bars the listed companies from undertaking NBFC activities regulated by the RBI. Separate notifications also covered surrendered licences and one restored registration. 

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