The Indian Wire » Business » Covid-19 impact : RBI cancels registration of 14 NBFCs; Nine surrender themselves

Covid-19 impact : RBI cancels registration of 14 NBFCs; Nine surrender themselves

NBFC-Non Banking Financial Company

With surrendering the certificates, the companies cannot transact the business of a non-banking financial institution. A Non Banking Financial Company (NBFCs), including Reliance Net and Nischaya Finvest Private Limited, have surrendered their certificate of registration, the Reserve Bank of India said on Tuesday. In another statement, the central bank said it has cancelled the certificate of registration of 14 non-banking financial companies (NBFCs).

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.

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 instalments by way of contributions or in any other manner, is also a non-banking financial company (Residuary non-banking company).

This will prohibit the companies to make any transactions with the third-party and will provide a restriction on the same.

Primus Capital Private Limited (Formerly known as Rapid Growth Capital Services Private Limited), Bharat Finance and Industries Limited, Signature Finance Private Limited, Dee Bee Leasing and Hire Purchase Pvt Ltd, Jindal Finlease Pvt Ltd, and B L S Investments Pvt Ltd, are among the NBFCs whose certificate of registration were scrapped by the Reserve Bank of India.

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