RBI Cancels Certificate of Registration of NBFCs; Check Details

The Reserve Bank of India(RBI) has notifies Cancellation of Certificate of Registration of Two NBFCs.

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:

As a result, the aforementioned companies are not permitted to conduct the business of a non-banking financial institution, as that term is defined in Section 45-I of the RBI Act of 1934, clause (a).

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property. A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).