In January 2026, the Reserve Bank of India (RBI) in the exercise of powers conferred on it under Section 45-IA (6) of the RBI Act, 1934, cancelled the Certificate of Registration (CoR) of 35 Non-Banking Financial Companies (NBFCs) for non-compliance with regular requirements, effective from December 9 to 31, 2025.
- As per RBI directions, these companies are now restricted to carry out the business of Non-banking Financial Institutions (NBFIs), as defined in clause (a) of Section 45-I of the RBI Act, 1934.
- Additionally, 16 other NBFCs have voluntarily surrendered their CoR to the RBI which led to the cancellation of registration for various strategic and operational reasons.
Exam Hints:
- What? Cancellation of CoR of 35 NBFCs
- Cancelled by: RBI
- Cancelled under: Section 45-IA (6) of the RBI Act, 1934
- Other Cancellations: 16 NBFCs (on voluntary basis)
- Effective Period: December 9–31, 2025
- Impact: Barred from carrying on NBFC/NBFI business under Section 45-I(a)
List of NBFCs with Cancelled CoR:
Geographical Concentration:The Reserve Bank of India (RBI) stated that the cancelled NBFCs are predominantly concentrated in Delhi and the National Capital Region (NCR), with only a few located outside.
Cancelled NBFCs: Key firms in Delhi/NCR include AG Securities, ALB Leasing & Finance, ATM Credit & Investments, Corporate Capital Services India, Decisive Finance, Divine Investments, Liberty Sales, Pearls Hire Purchase Corporation, Quasar India Fincap, Sunlife Securities, Sunrise Manufacturing Co, Swito Finance & Estates, Triveni Vinimay and others.
- Outside the NCR, Shivom Investment & Consultancy Ltd is based in Mumbai, Maharashtra, while Satya Prakash Capital Investment Ltd operates from Jabalpur, Madhya Pradesh(MP).
Voluntary Surrender NBFCs :
Categories: These 16 NBFCs span across 3 main categories namely: business exit category (8 companies); meeting unregistered Core Investment Company(CIC) criteria (3 companies); and corporate restructuring (5 companies).
- Business Exit Category: Dharmesh Stock Broking Pvt. Limited (Mumbai, Maharashtra); Millennium Holdings Pvt. Limited (Kolkata, West Bengal, WB); Celestial Consultants Pvt. Limited (Kolkata, WB); Damayanti Finance & Properties Pvt. Limited (Chennai, Tamil Nadu, TN); Liquid Paper Finserve Pvt. Ltd. (Delhi); Peerless Financial Services Ltd. (Kolkata, WB); Park Avenue Engineering Ltd. (Mumbai, Maharashtra); and Arvind Overseas Project Services Pvt. Ltd. (Delhi).
- CIC Criteria: Shyam Basic Infrastructure Projects Pvt. Ltd. (Jaipur, Rajasthan); Shruti Finsec Pvt. Ltd. (Kanpur, Uttar Pradesh, UP) and Sita Investment Company Ltd. (Raipur, Chhattisgarh).
- Corporate Restructuring: NBFCs that cease to be a legal entity due to amalgamation/merger/dissolution/voluntary strike off : Edelweiss Retail Finance Ltd. (Mumbai, Maharashtra); Super Commodities Pvt. Ltd. (Kolkata, WB); Silfix Tradelink Pvt. Ltd. (Kolkata, WB); Sakthi Traders Pvt. Ltd. (Kolkata, WB) and Yaduka Financial Services Ltd. (Kolkata, WB).
About Non-Banking Financial Companies (NBFCs):
Type: NBFC is a financial institution registered under the Companies Act, 1956 or Companies Act, 2013, offering loans and Advances, and acquiring stock, equities, and debts issued by the government or any other local authority.
Regulation: NBFCs are primarily regulated by RBI under the RBI Act, 1934.
Registration Process: As per Section 45-IA of the RBI Act, 1934, no NBFC can start their business activity until they obtain CoR from RBI.
Minimum NOF Requirement: At present, NBFCs applying for registration, must maintain minimum Net Owned Funds (NOFs) of Rs 10 crore.
- However, minimum NOF may be higher depending on specific type of NBFC.
Key Difference from Banks: RBI has imposed certain restrictions on NBFCs which makes it different from regular banks like: not allowed to to accept the demand deposits; not covered as part of the Payment Settlement System (PSS) of RBI; and depositors of NBFCs are not entitled to avail deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC).
Types of NBFCs: NBFCs have been classified into different categories based on the nature of their activities such as: Investment and Credit Company (ICC); Housing Finance Company (HFC); Infrastructure Finance Company (IFC); Infrastructure Debt Fund (IDF-NBFC) and Core Investment Company (CIC) among others.
- In terms of the type of liabilities, NBFCs have also been categorised into Deposit-taking NBFC and Non-Deposit-taking NBFC.
