RBI Cancels Registration of 4 NBFCs; 5 Others Surrender Certificates
Moneylife Digital Team 08 April 2024
As many as five non-banking financial companies (NBFCs) have surrendered their certificates of registration (CoR) to Reserve Bank of India (RBI) due to their exit from the non-banking financial institution (NBFI) business. Separately, RBI cancelled the registration of four NBFCs, one each from Uttar Pradesh (UP), Tamil Nadu (TN), Punjab and Himachal Pradesh.
Those whose registration has been cancelled by RBI include UP-based Kundles Motor Finance Pvt Ltd, TN-based Nithya Finance Ltd, Punjab-based Bhatia Hire Purchase Pvt Ltd and Himachal Pradesh-based Jiwanjyoti Deposits and Advances Ltd.
RBI has not given any specific reason for cancelling the registration of these four NBFIs. Its statement merely says, "...in exercise of powers conferred on it under section 45-IA (6) of the RBI Act, 1934, has cancelled the certificate of registration...As such, the above companies shall not transact the business of a non-banking financial institution -NBFI, as defined in clause (a) of Section 45-I of the RBI Act."
The five NBFCs who have surrendered registration certificates include two from West Bengal and one each from TN, UP and Telangana. According to RBI, the five NBFCs surrendered their registration certificates following their decision to exit from the non-banking finance business.
Invel Commercial Pvt Ltd and Mohan Finance Ltd from West Bengal surrendered their registration certificate, and RBI issued an order to cancel their registration on 8 March 2024 and 19 March 2024, respectively.
TN-based Growing Opportunity Finance (India) Pvt Ltd, which was issued a registration in 2015, also decided to surrender its certificate. RBI issued an order for this on 6 March 2024.
RBI says Saraswati Properties Ltd from UP and Telangana-based Quicker Marketing Pvt Ltd also surrendered their registration as a NBFC, and RBI issued an order to cancel their registration on 20 March 2024.
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