RBI cancels licences of over 130 NBFCs, majority from West Bengal
Mumbai, June 10
The Reserve Bank of India has cancelled the Certificates of Registration of 135 Non-Banking Financial Companies, with a large number of the affected entities registered in Kolkata and other parts of West Bengal.
In a press release issued on June 10, the central bank said it had cancelled the registrations under powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934. The action covers NBFCs across multiple states, although a majority of the companies listed are based in Kolkata and neighbouring areas of West Bengal.
The list includes firms such as Akshay Fiscal Services Ltd, Alfa Tie-Up Private Limited, Arihant Enterprises Ltd, Destiny International Limited, Eastern Synthetics Pvt Ltd, ETL Infrastructure Finance Limited, Gateway Fincons India Ltd, KPS Finance & Trade (P) Ltd, Lifetime Financial Services Ltd and several other entities operating from Kolkata.
Apart from West Bengal-based companies, the RBI's order also covers a few NBFCs from states such as Maharashtra, Telangana, Delhi, Manipur, Tamil Nadu and Madhya Pradesh. Among them are Essel Finance Business Loans Limited in Mumbai, Citiwide Financial Services Limited in Hyderabad and Kiranglobal Business Investment Limited in Chennai.
The cancelled entities had originally received their Certificates of Registration between 1998 and 2022, according to details provided by the central bank. The list includes companies that had been operating as NBFCs for several years before their registrations were withdrawn.
The RBI clarified that, following the cancellation of their Certificates of Registration, these companies shall not carry on the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
"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," the RBI said in its notification.
The latest action forms part of the RBI's ongoing supervisory and regulatory oversight of the non-banking financial sector, under which entities failing to meet regulatory requirements can face cancellation of registration and restrictions on carrying out NBFC activities.
— ANI
Reader Comments
Finally, some action! I've seen so many NBFCs in Kolkata charging 36% interest on small loans. They trap poor people in debt cycles. Hope the RBI now goes after the big defaulters too, not just the small ones.
So many from West Bengal, but is it just coincidence or is there a pattern of regulatory arbitrage in that state? I'm from Delhi and we have our share of rogue NBFCs here too. The RBI should publish what specific violations these companies did—transparency builds trust.
This is long overdue. We moved to India five years ago for work, and the NBFC sector always seemed like the wild west of finance—no proper regulation, people losing savings overnight. Glad the RBI is stepping up, but cancelling registrations is just step one. Recovery of funds from investors should follow.
My father invested in one of these NBFCs back in 2010. Lost everything when the company shut down without warning. 😢 These cancellations are good, but what about the thousands of small investors who trusted these companies? The RBI needs a compensation mechanism, not just punishment.
Living in Bangalore, I see how NBFCs like these are actually the only option for small kirana shops and auto drivers to get quick loans. Banks take months. So while RBI is doing its job, they should also think about how to provide alternative credit channels for the unbanked. Balance is key. 👍
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