RBI cancels Certificate of Registration of 37 NBFCs
The Reserve Bank of India (RBI) has cancelled the Certificate of Registration of various Non-Banking Financial Companies (NBFCs) under Section 45-IA (6) of the Reserve Bank of India Act 1934.
A non-banking financial institution, also known as a non-bank financial company, is a financial entity that is not legally a bank, does not hold a complete banking licence, and is not overseen by a national or international banking regulatory organisation.
NBFC is a company registered under the Companies Act of 1956 involved in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the government or local authority or other marketable securities of a similar nature, leasing, hire purchase, insurance business, chit business but doesn’t include any institution whose principal business is that of agricultural activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
The non-banking financial companies whose registration got cancelled include Reliance Commercial Finance, IDFC Limited, Manoway Investments Private Limited, Birla Family Investments Private Limited and many others.
Cancellation of CoR due to exit from Non-Banking Financial Institution (NBFI) business
Cancellation of CoR due to NBFC ceasing to be a legal entity due to amalgamation/ merger/ dissolution/ voluntary strike-off, etc.
Certificate of Registration cancelled by RBI
As such, the above companies shall not transact the business of a non-banking financial institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
