RBI Cancels NBFC Registrations

Mumbai, Dec 11 (PTI) The Reserve Bank of India (RBI) on Thursday cancelled the certificate of registration of four non-banking financial companies (NBFCs) from West Bengal and Chandigarh.

These include West Bengal-based Gem Investments & Trading Co Pvt Ltd, Vistar Financiers and Ambica Barter Pvt Ltd, and Chandigarh-based Shri Lakhavi Financial Services Limited, as per a statement.

The action has been taken as per powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, it said.

Four other NBFCs surrendered their certificates, including Yg Capital Limited, due to exit from Non-Banking Financial Institution (NBFI) business, Intell Invofin India Private Limited for meeting the criteria prescribed for unregistered Core Investment Company (CIC) that do not require registration.

Gangotri Commodities & Finvest Pvt Ltd and Perkin Dealers Pvt Ltd surrendered their certificates as the particular NBFC has ceased to be a legal entity due to amalgamation/ merger/ dissolution/ voluntary strike-off, it said.

The central bank also slapped a fine of Rs 13,000 on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha, on Thursday.

The action is for non-compliance with RBI directions as the lender had incurred capital expenditure without prior approval of the RBI and failed to submit credit information of its customers to all the four credit information companies, as per an official statement.