RBI Tightens Grip on NBFCs, Blacklists Two NBFCs and Three Other Surrendered

RBI Tightens Grip on NBFCs, Blacklists Two NBFCs and Three Other Surrendered

Reserve Bank of India (RBI) has cancelled the certificates of two Non-Banking Financial Corporations (NBFCs) and three NBFCs have surrendered their certificates to the apex bank.

MUMBAI: The MSME Lending is on a threshold of a new change. With RBI’s strong grip on Lending business, the situation looks to be tough for NBFCs. Recently, the Certificates of Datia, Madhya Pradesh based M/s Chandel Hire Purchase Pvt. Ltd and Jaipur based M/s Golden Future Capital Limited have been cancelled.

RBI said these companies cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.

Also, the tree NBFCs that have surrendered the Certificate of Registration granted to them by the RBI area – New Delhi based M/s Shringarika Finance & Leasing Private Limited; Karur based M/s Arasi Finance Private Limited; and Kolkata based M/s Suryasakti Commodities Private Limited.

Recently, certificates of 5 other NBFCs were also cancelled by the RBI and 2 NBFCs had surrendered their certificates.