RBI Cancels CoR of 36 NBFCs; 9 NBFCs Voluntarily Surrender Licences

Why in News?

The Reserve Bank of India (RBI) cancelled the Certificate of Registration (CoR) of 36 Non-Banking Financial Companies (NBFCs).

Additionally, 9 NBFCs voluntarily surrendered their licences and exited the NBFC business.

Objective of RBI Action:

Strengthen regulatory discipline in the NBFC sector.

Remove inactive or non-compliant financial entities.

Ensure a transparent and well-regulated financial system.

Some NBFCs Whose Licences Were Cancelled:

Excellence Broking & Finance Pvt. Ltd.

Jibralter Traders Ltd.

Nilima Enterprises Pvt. Ltd.

Welplan Distributors Pvt. Ltd.

Westport Export Pvt. Ltd.

Adarsh Commercial Pvt. Ltd.

Bahubali Leasing Ltd.

Harrison Trexim Pvt. Ltd.

Pacific Management Pvt. Ltd.

Wintech Telecom Pvt. Ltd.

NBFCs that Voluntarily Surrendered Licences:

Manglam Vanijya Pvt. Ltd.

KKR India Asset Finance Pvt. Ltd.

Mechno Sales Agencies Pvt. Ltd.

Premier Ferro Alloys & Securities Ltd. (became an unregistered Core Investment Company – CIC).

Reasons for Licence Cancellation / Surrender:

Non-compliance with RBI regulatory norms.

Companies exiting the NBFC business voluntarily.

Corporate restructuring or mergers.

Companies becoming unregistered Core Investment Companies (CICs).

Amalgamation or voluntary strike-off of entities.