RBI revokes registration of 150 NBFCs across country, Delhi and Bengal hit hardest

The Reserve Bank of India (RBI) has revoked the Certificate of Registration (CoR) of 150 Non-Banking Financial Companies (NBFCs), with the largest share of cancellations involving firms based in Delhi and West Bengal, according to a central bank statement released on Thursday. A review of the RBI’s list found that nearly 67 affected NBFCs were registered in Delhi, while around 75 were based in West Bengal, mainly concentrated in Kolkata and surrounding areas.

"The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies," the RBI said in its press release.

Cancellations of NBFCs from different states

The cancellations cover several small and medium-sized finance and investment firms involved in activities such as lending, leasing, investments, and other related financial services. Companies from Telangana, Karnataka, Madhya Pradesh, Bihar, and Haryana were also among those impacted.

The RBI further said, "As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934."

NBFCs are financial institutions that offer loans, investment products, and other banking-like services but operate without a banking licence. They are governed by the RBI under the RBI Act. With the cancellation of their registration, these entities are no longer permitted to function as NBFCs or carry out financial activities regulated by the central bank.