The RBI has cancelled the registration of 150 Non-Banking Financial Companies (NBFCs). The highest number of affected firms are located in Delhi (67) and West Bengal (75), which can no longer conduct financial business activities.
The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of 150 Non-Banking Financial Companies (NBFCs), with the highest number of affected firms registered in Delhi and West Bengal, according to a central bank release issued on Thursday.
An analysis of the RBI list showed that around 67 of the NBFCs were registered in Delhi, while about 75 companies were registered in West Bengal, particularly in Kolkata and nearby regions.
RBI Cites Legal Powers for Action
"The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies," the RBI said in its press release.
The cancelled entities include several small and mid-sized finance and investment companies engaged in lending, leasing, investment and related financial activities. The list also includes firms from states such as Telangana, Karnataka, Madhya Pradesh, Bihar and Haryana.
Consequences of Cancellation
The RBI further said, "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."
NBFCs are financial institutions that provide loans, investments and other financial services similar to banks, but they do not hold a banking licence. They are regulated by the RBI under the RBI Act. The cancellation of registration means these firms can no longer operate as NBFCs or undertake financial business activities regulated by the central bank. (ANI)
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