23 NBFCs registrations cancelled by Reserve Bank of India in crackdown
Notably, the move has come after the sector faced a severe liquidity crisis following the collapse of IL&FS.
The Reserve Bank of India (RBI) has cancelled the certificate of registration of 23 non-banking financial companies (NBFCs). These registrations were stated to be cancelled between May 10 and June 11. The Apex bank move has impacted companies such as Prudent Fintrade, Deluxe Vyapaar and Intimate Finance and Investment, among others, according to an RBI release on Thursday. Notably, the move has come after the sector faced a severe liquidity crisis following the collapse of IL&FS.
In terms of regulations, section 45-IA of the RBI Act stipulates that no NBFC can commence business of a non-banking financial institution without obtaining a certificate of registration from the RBI and without having net owned funds of Rs 25 lakh (Rs 2 crore for new registration).
Meanwhile, 4 NBFCs have surrendered their certificate of registration to RBI on Thursday. The RBI has therefore cancelled their registration.
These 4 NBFC are: 1. KRC Insurance Advisors Private Limited (presently known as KRChoksey Insurance Advisors Limited); 2. Tanwi Estates Pvt. Ltd; 3. Caravan Commercial Company Ltd; and 4. Twinkle Leasing and Finance (Delhi) Limited
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.