The Reserve Bank of India (RBI) said in a statement that it has cancelled registration of 22 non-banking financial companies (NBFCs) including Amazan Capital and Mascot Commerce.
The cancellation of the these NBFCs is in exercise of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934. According to the statement following the cancellation of registration certificate, these companies cannot transact the business of a non-banking financial institution.
NBFCs whose registration have been canceled include Kundan Leasing and Finvest, Raseera Investments, Limtex Impex, Dignity Motors Finance, Akansha Consultancy Services, Bini Commercial Enterprises, Nirankar Investments, and Surin Investments.
Earlier this month, the RBI had canceled registration of six other NBFCs including the including Kundan Leasing and Finvest, Raseera Investments, Limtex Impex, Dignity Motors Finance, Akansha Consultancy Services, Bini Commercial Enterprises, Nirankar Investments, and Surin Investments.
A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India. NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction.
Extra Info :
RBI Governor : Raghuram G Rajan
RBI Dy Governor : H R Khan, Dr. Urjit Patel, R Ghandhi and S S Mundra
So now lets discuss some questions related to this article :
1. RBI has cancelled registration of how many NBFCs ?
2. Expand the term NBFC and RBI.
3. NBFC is registered under which company act ?
Courtesy : Business Standard