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RBI Cancels 150 NBFC Registrations; Delhi, West Bengal Hit Hard

The Reserve Bank of India has cancelled the Certificate of Registration of 150 Non-Banking Financial Companies (NBFCs). The highest number of affected firms are from Delhi (67) and West Bengal (75). The RBI exercised its powers under Section 45-IA (6) of the RBI Act, 1934 to cancel these registrations. The cancelled entities are now barred from transacting the business of a Non-Banking Financial Institution.

Key Points: RBI Cancels 150 NBFC Registrations, Hits Delhi and Bengal

  • RBI cancels 150 NBFC registrations
  • 67 firms from Delhi affected
  • 75 firms from West Bengal impacted
  • Firms barred from financial business under RBI Act
2 min read

RBI cancels registrations of 150 NBFCs; around 67 firms from Delhi, 75 from West Bengal

RBI cancels registration of 150 NBFCs, with 67 from Delhi and 75 from West Bengal. Firms barred from financial business under RBI Act.

"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. - RBI Press Release"

New Delhi, May 14

The Reserve Bank of India has cancelled the Certificate of Registration of 150 Non-Banking Financial Companies, 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.

"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.

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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Reader Comments

P
Priya S
Finally some action! I've seen so many small NBFCs in Kolkata that charge exorbitant interest rates and harass borrowers. RBI should also ensure that existing customers of these cancelled firms are not left in lurch. What happens to their loan accounts now? 🤔
V
Vikram M
Strict action needed, but I hope this doesn't affect genuine small businesses that rely on NBFCs for credit. Banks are still hesitant to lend to MSMEs. RBI should balance regulation with financial inclusion.
J
James A
Impressive that RBI is taking such steps. In the US, we have the SEC and state regulators doing similar crackdowns. India's financial regulator seems to be maturing. But 150 cancellations in one go is quite a number—wonder how many more are still operating unsafely.
R
Rohit P
About time! Many of these NBFCs in Delhi were just running chit fund-like schemes under the garb of finance companies. Small investors have lost crores due to such entities. RBI should now work with state police to ensure these firms don't reopen under different names.
K
Kavya N
As someone from West Bengal, I'm not surprised. There are so many small NBFCs operating out of basements in Kolkata that no one even knows about. But the RBI should also provide a clear timeline for how they will monitor compliance going forward. Transparency matters!
S

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