The Reserve Bank of India (RBI) has issued an official directive cancelling the Certificates of Registration (CoR) of 135 Non-Banking Financial Companies (NBFCs) under Section 45-IA (6) of the Reserve Bank of India Act, 1934.

Following this action, these companies are legally barred from transacting the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the RBI Act.

Key Highlights of the RBI Directive

• Geographic Concentration: A substantial majority of the penalised NBFCs had their registered offices located in West Bengal (primarily Kolkata), a region historically home to a high concentration of mid-sized finance and investment firms.

• Prominent Affected Entities: The broad cancellation order includes firms such as Express Fincap House, Akshay Fiscal Services, Times Finance (P), Jupiter Projects (P), Jupiter Finvest, Essel Finance Business Loans, and Citiwide Financial Services.

• The Regulatory Context: This massive sweep is part of the central bank’s ongoing supervisory push to eliminate inactive, non-compliant, or shell financial operations, ensuring absolute alignment with modern governance, reporting standards, and capital adequacy norms.

Voluntary Surrender of Licences

Separately, the RBI announced that 13 additional NBFCs have voluntarily surrendered their certificates of registration due to business exits, strategic restructuring, or legal dissolution.

The reasons for these voluntary surrenders fall into two distinct operational categories:

1. Direct Exit from the NBFI Business

Six companies voluntarily chose to wind down their financial institution operations to exit the sector entirely:

• J. Thomas Finance

• Econ-Super Sales

• Hitesha Finance and Investment

• Tinnevelly Tuticorin Investments

• Carnex Vinimay

• Impact Leasing

2. Corporate Restructuring & Dissolution

The remaining entities surrendered their licenses because they ceased to exist as independent legal entities following corporate actions such as amalgamations, mergers, voluntary strike-offs, or regulatory reclassifications:

• Forerunner Capital Investments: Surrendered its license because it transitioned to meet the specific statutory criteria prescribed for an unregistered Core Investment Company (CIC), which legally does not require an RBI registration.

• Corporate Dissolution Group: Caspian Impact Investments, Hari Darshan Sales, Ivory Consultants, SKA Consultancy Services, Trishita Management, and Suban Trades dissolved their licenses due to completed mergers, liquidations, or voluntary strike-offs.

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