Reserve Bank of India Revokes Certificates of Registration of 135 NBFCs
The Reserve Bank of India (RBI) has cancelled 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. This significant regulatory action was announced to ensure greater compliance and transparency in India’s financial sector.
As a result of this cancellation, these companies are no longer permitted to conduct business as Non-Banking Financial Institutions (NBFIs) in India.
Why Did RBI Cancel the Registration of These NBFCs?
The RBI regularly reviews the operations and compliance status of NBFCs operating in the country. Under the powers granted by the RBI Act, the central bank can revoke registration certificates if companies fail to meet regulatory requirements or cease to satisfy conditions necessary for carrying on NBFC business.
Key Objective Behind RBI’s Action
- Strengthening financial sector governance.
- Protecting customer interests.
- Removing inactive or non-compliant NBFCs.
- Improving transparency in the financial ecosystem.
- Enhancing confidence in regulated financial institutions.
Highlights of RBI’s Latest NBFC Cancellation Order
Total NBFCs Affected
- 135 NBFCs lost their Certificate of Registration.
- Cancellation orders were issued between April and May 2026.
- Most affected companies are registered in West Bengal, while others are located in Maharashtra, Telangana, Manipur, Assam, Delhi, Tamil Nadu, Madhya Pradesh, and other states.
Some Notable Companies Included in the List
- Express Fincap House Private Limited
- Akshay Fiscal Services Ltd
- Arihant Enterprises Ltd
- ETL Infrastructure Finance Limited
- Uppal Credits And Investments Private Limited
- KDS Micro Credit Services Pvt Ltd
- Essel Finance Business Loans Limited
- Citiwide Financial Services Limited
What Does RBI Cancellation Mean for These Companies?
After cancellation of the Certificate of Registration:
The Companies Cannot
- Carry on NBFC business activities.
- Accept or renew public deposits as an NBFC.
- Offer financial services under an NBFC license.
- Represent themselves as RBI-registered NBFCs.
Impact on Existing Customers
Customers dealing with these entities should verify the status of their financial relationships and remain in contact with the respective companies regarding any existing obligations. RBI-regulated NBFC activities cannot be continued after cancellation of registration.
RBI’s Continued Focus on Financial Sector Compliance
The RBI has been taking strict regulatory measures against entities that fail to comply with prescribed norms. Such actions are aimed at maintaining the integrity and stability of India’s financial system.
Experts believe that regular supervisory actions by RBI help:
- Improve financial discipline.
- Reduce risks to customers.
- Promote responsible lending practices.
- Strengthen trust in the NBFC sector.
How to Check Whether an NBFC is RBI Registered?
Before dealing with any NBFC, customers should:
Verify Registration Status
- Visit the RBI website.
- Check the list of registered NBFCs.
- Confirm the Certificate of Registration number.
- Review the company’s regulatory status.
This helps customers avoid dealing with unauthorized financial entities.
Frequently Asked Questions (FAQs)
Q1. How many NBFCs did RBI cancel in May 2026?
RBI cancelled the Certificates of Registration of 135 NBFCs through various orders issued during April and May 2026.
Q2. Can these companies continue NBFC operations?
No. Once the Certificate of Registration is cancelled, the company cannot carry on the business of a Non-Banking Financial Institution.
Q3. Under which law did RBI take this action?
The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
Q4. Why does RBI cancel NBFC registrations?
RBI may cancel registrations due to non-compliance with regulatory requirements, failure to meet licensing conditions, or other supervisory concerns.
Conclusion
The RBI’s decision to cancel the registration of 135 NBFCs demonstrates its commitment to maintaining a strong, transparent, and compliant financial system. Customers and stakeholders should always verify the regulatory status of financial institutions before engaging in any financial transaction. This move further reinforces RBI’s efforts to safeguard the interests of borrowers, investors, and the overall financial ecosystem in India.
