The Reserve Bank of India (RBI) has taken a significant step by revoking the registration certificates of 17 non-banking financial companies (NBFCs) in a single move. In addition to this, 20 other NBFCs have voluntarily surrendered their Certificates of Registration (CoR) due to various reasons.
Strict Action Against NBFCs in West Bengal
All the NBFCs whose licenses have been cancelled by the RBI are based in West Bengal. With this action, these companies are now barred from conducting any financial transactions or business activities as NBFCs. The decision comes as part of RBI’s continuous monitoring and regulatory actions to ensure transparency and compliance within the financial sector.
List of Companies Whose Licenses Were Cancelled:
- Zayan Financial Service Private Limited, Kolkata
- Namokar Consultant Private Limited, Kolkata
- Salasarji Merchant Private Limited, Howrah
- Outrem Estates Private Limited, Kolkata
- PK Mercantile Private Limited, Kolkata
- Panorama Financial Private Limited, Kolkata
- Prasant Impex Private Limited, Kolkata
- Ramuka Commercial Private Limited, Kolkata
- Pretius Merchant Private Limited, Howrah
- Castle Fincon Private Limited, Kolkata
- Kishoreray Trading Holding Private Limited, Howrah
- Gama Commerce Private Limited, Kolkata
- Itamari Commerce Private Limited, Howrah
- Divya Dealers, Kolkata
- Preference Technologies Private Limited, Kolkata
- ITC Marketing Private Limited, Kolkata
Voluntary Surrender of Registration Certificates
Apart from the cancellations, several NBFCs have opted to surrender their CoR due to reasons such as business closure, mergers, amalgamations, voluntary strike-offs, or exiting the financial services sector.
Key Companies That Surrendered Their CoR:
- Manov Investment Private Limited (Mumbai, Maharashtra)
- Reliance Commercial Finance Limited (Mumbai, Maharashtra)
- IDFC Financial Holding Company Limited (Chennai, Tamil Nadu)
- IDFC Limited (Chennai, Tamil Nadu)
- Birla Family Investment Private Limited (Mumbai, Maharashtra)
- Birla TMT Holdings Private Limited (Mumbai, Maharashtra)
- CRB Agency Private Limited (West Bengal)
- Agarwal Iron and Steel Company Limited (West Bengal)
- Akashganga Suppliers Private Limited (West Bengal)
- Brain Trust Securities Private Limited (West Bengal)
Reason Behind RBI’s Action
The RBI’s regulatory actions aim to safeguard the financial ecosystem and protect the interests of investors. By cancelling the licenses and accepting voluntary surrenders, RBI ensures that only compliant and financially sound entities operate in the market.
Implications for the Financial Sector
This step is expected to enhance the credibility of the NBFC sector and instill greater confidence among investors and stakeholders. The RBI continues to emphasize the importance of regulatory adherence to maintain the stability and integrity of India’s financial system.