RBI
Why RBI just shut down 150 non-banking finance companies? Details inside
The Reserve Bank of India has cancelled the Certificates of Registration (CoR) of 150 non-banking financial companies (NBFCs) under Section 45-IA (6) of the RBI Act, 1934, effectively barring them from carrying out non-banking financial business activities.
In a statement, the central bank said the affected entities are no longer permitted to “transact the business of a Non-Banking Financial Institution, as defined under clause (a) of Section 45-I of the RBI Act, 1934.”
“The Reserve Bank of India, in exercise of powers conferred 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.
A majority of the companies whose registrations were cancelled were based in West Bengal and Delhi.
Separately, the RBI also announced that seven NBFCs had voluntarily surrendered their Certificates of Registration.
“The RBI, in exercise of powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR,” the statement added.
Of these seven entities, the registrations of Guru Kripa Finvest, Gajraj Securities & Services, Ashok Viniyoga, and Purvanchal Investment and Trading Company were cancelled following their exit from the non-banking financial institution (NBFI) business.
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