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

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

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