RBI Cancels Registration of 135 NBFCs, 13 Surrender Licenses
Quick Look
- The Reserve Bank of India has cancelled the registration of 135 non-banking finance companies, with many based in West Bengal.
- Additionally, 13 NBFCs surrendered their licenses due to exiting the business or ceasing to be legal entities.
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Why It Matters
The Reserve Bank of India has taken action against numerous non-banking finance companies. This includes cancelling the registration of 135 companies and accepting the surrender of licenses from 13 others. These actions are attributed to various reasons such as exiting the business or ceasing to be legal entities.
The Reserve Bank of India has cancelled the registration of 135 non-banking finance companies. Thirteen other companies have surrendered their licenses. These actions are due to various reasons including exiting the business or ceasing to be legal entities. Many of the cancelled companies were based in West Bengal. This move impacts the financial landscape.
Mumbai: The Reserve Bank of India (RBI) on Wednesday said it has cancelled the certificate of registration of 135 non-banking finance companies.
These include companies such as Express Fincap House, Akshay Fiscal Services, Times Finance (P), Jupiter Projects (P), Jupiter Finvest, Essel Finance Business Loans, and Citiwide Financial Services.
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The majority of the NBFCs, whose certificates of registration were cancelled, had a registered office address in West Bengal, an RBI release showed.
Separately, 13 non-banking finance companies have surrendered their certificates of registration to the central bank due to exiting the business or ceasing to be legal entities following amalgamation/ merger/dissolution/ voluntary strike.
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J. Thomas Finance, Econ-Super Sales, Hitesha Finance and Investment, Tinnevelly Tuticorin Investments, Carnex Vinimay, and Impact Leasing surrendered their licences due to exit from Non-Banking Financial Institution (NBFI) business, the release said.
Further, Forerunner Capital Investments' licence was surrendered due to meeting the criteria prescribed for unregistered Core Investment Company (CIC) that do not require registration.
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NBFCs such as Caspian Impact Investments, Hari Darshan Sales, Ivory Consultants, SKA Consultancy Services, Trishita Management, and Suban Trades surrendered their licence due to the NBFC ceasing to be a legal entity due to amalgamation/ merger/dissolution/ voluntary strike-off, etc, the release added.
Open Questions
- What specific criteria led to the cancellation of registrations for the 135 NBFCs?
- What is the total number of NBFCs that have ceased operations in India recently?
- What is the impact on the financial sector in West Bengal specifically?
- Are there any plans for stricter oversight of NBFCs in the future?
