The Reserve Bank of India (RBI) recently announced the cancellation of registration for four non-banking finance companies (NBFCs) and the surrender of licenses by 11 other entities. This move signifies the RBI’s efforts to maintain regulatory compliance and ensure the stability of the financial sector.
Cancellation of NBFC Licenses:
The RBI cancelled the certification of registration for the following NBFCs:
- Nanma Chits and Financiers Ltd
- Chidrupi Financial Services Ltd
- Goldline Financial Services Ltd
- Kailash Auto Finance Ltd
Surrender of NBFC Licenses:
The RBI reported that 11 entities have voluntarily surrendered their NBFC licenses. These entities include:
- Sanapala Holdings Pvt Ltd
- De Lage Landen Financial Services Pvt Ltd
- Jamshedpur Securities
Reasons for Surrender:
Among the 11 NBFCs that surrendered their licenses, the reasons varied:
- Exit from NBFC Business: Four entities voluntarily surrendered their licenses due to their decision to exit the NBFC business.
- Non-compliance with CIC Criteria: Four entities surrendered their licenses as they did not meet the criteria set for unregistered Core Investment Companies (CIC) that do not require registration.
- Changes in Legal Entity Status: The remaining three entities surrendered their licenses because they ceased to exist as legal entities due to reasons such as amalgamation, merger, dissolution, voluntary strike-off, etc.