RBI has revoked the registrations of six non-banking financial companies (NBFCs)
“NBFCs are financial entities that borrow money from banks or markets and then lend it to customers at somewhat higher interest rates than traditional banks.”
Cartel Finance and Investments Private Limited, Alamgir Motor Finance Limited, Nau-Nidh Finance Limited, Kim Investment Limited, Sambandh Finserve Private Limited, and BTL Holding Company Limited are among the companies on the list.
Before cancelling the licence, RBI issued a show cause notice to Sambandh Finserve earlier this year.
Seven NBFCs have surrendered their Certificates of Registration, according to a separate notice from the RBI.
CLSA India Finance Private Limited, Altico Capital India Limited, Helios Finserve Private Limited, GPL Finance Limited, Pramanand Commercial Private Limited, Amandeep Transport and Leasing India Limited, and Subhadra Investments Private Limited are among the NBFCs that have surrendered their licences.
The RBI stated that “as a result, the above entities shall not transact the activity of a Non-Banking Financial Institution, as specified in clause (a) of Section 45-I of the RBI Act, 1934.”