Taking major action against four non-banking financial companies (NBFCs), the Reserve Bank of India has cancelled the registration certificates. In a statement issued on Friday, the Central Bank said that the registration certificates of 4 NBFCs have been cancelled and 13 NBFCs have surrendered their registration certificates. The banking regulator said that the registration certificates of four companies have been cancelled under Section 45-IA (6) of the Reserve Bank of India Act, 1934. Let us also tell you about which companies the RBI has taken action against. Is your money also trapped in these NBFCs?
Measures taken against these four companies
The central bank cancelled the registration certificates of Rajasthan-based Bharatpur Investment Limited, Madhya Pradesh-registered KS Finlease Limited, Tamil Nadu-registered Build Con Finance Limited and Operating Lease and Hire Purchase Company Limited registered outside Tamil Nadu. Following this action, the Reserve Bank of India (RBI) said that now these companies will not operate as non-banking financial institutions as defined under subsection (a) of Section 45-I of the RBI Act, 1934.
13 companies registered and delivered
Along with the cancellation report, the RBI also issued another statement stating that 13 NBFCs have surrendered the Certificate of Registration (CoR) granted by the central bank. The RBI said in the statement that the RBI cancelled their COR using the powers under Section 45-IA (6) of the Reserve Bank of India Act, 1934. According to a press release issued by the RBI, out of the 13, companies such as Tamil Nadu-based Suguna Fincorp and West Bengal-based Spam Merchants surrendered their CoRs after exiting the NBFC business.
In which states are these companies present?
According to the RBI, other companies like Maham Holdings Pvt Ltd, Padmalakshmi Holdings, Rohini Holdings and Raghuvansh Holdings did not meet the prescribed criteria for unregistered principal investment companies (CICs), which do not require registration, and so their CORs were cancelled. These four companies are from Tamil Nadu. The remaining seven of the 13 companies that surrendered their CORs and were cancelled include Umang Commercial Company Pvt Ltd, Madura Micro Finance Ltd, Dante Investments Pvt Ltd, Canopy Finance Ltd, Maa Kalyaneshwari Holdings Pvt Ltd, Varahgiri Investments and Finance Pvt Ltd and Tamal Stationers. Pvt. Ltd. are included. These seven companies are located in West Bengal, Maharashtra and Tamil Nadu.
