REC Limited Receives RBI NOC for Proposed Merger with PFC

The No-Objection Certificate (NOC) for the proposed merger of the REC Limited with the Power Finance Corporation Limited (PFC) has been issued by the Reserve Bank of India (RBI). This decision came on October 16, 2026, and it is one of the regulatory steps taken during the proposed process of merger between the two public sector financial organizations. The proposed merger is as per Section 230-232 of the Companies Act, 2013. The NOC issued by the Reserve Bank of India (RBI) is not a complete process of merger.

What Is the Proposal for the Merger of the REC-PFC Entities?

The proposal for the merger of the two entities comprises the merger of REC Limited into Power Finance Corporation Limited, along with the shareholders and creditors of the companies.

This will take place through the application of the relevant provisions of the Companies Act, 2013.

The No-Objection Certificate of the RBI is an important milestone in the regulatory procedure. However, there are other legal and regulatory requirements that need to be fulfilled for the merger.

Key Features of the Proposal for the Merger

Feature	Description
Entities Involved in the Merger	REC Limited and Power Finance Corporation Limited
Nature of the transaction	Merger of REC Limited into PFC
Authority issuing	NOC Reserve Bank of India
News date	October 16, 2026
Legislation applicable	Companies Act, 2013
Relevant sections	Sections 230 to 232
Status of the project	Regulatory NOC obtained; other requirements pending

What are REC Limited and PFC?

REC Limited

• REC Limited is a financial corporation owned by the government which finances projects related to power sector infrastructure. The functions of this organization help in generating electricity, transmitting and distributing it as well as other infrastructure projects.
• REC helps finance projects related to increasing access to electricity, strengthening power distribution infrastructure, and developing infrastructure of the energy sector of India.

Power Finance Corporation Limited

• Power Finance Corporation Limited (PFC) is a government-owned financial organization involved in financing projects of the power sector in India.
• This organization offers financial support for various eligible organizations and their projects related to electricity value chain.

What is the Significance of the No-Objection Certificate Issued by RBI?

The No-Objection Certificate signifies that there are no objections from the authority issuing the same to a particular proposal, but not necessarily that all approvals necessary for the transaction have been received.

In the case of REC-PFC, the NOC is issued in the regulatory context of the proposed merger and is dependent upon the fulfillment of legal, statutory and regulatory requirements.