RBI Crackdown: Certificates Cancelled for Four NBFCs in India

The Reserve Bank of India has revoked the certificates of registration for four non-banking financial companies in West Bengal and Chandigarh. The action is based on regulatory powers and involves penalties for non-compliance. Additionally, four other firms surrendered their certificates due to various operational changes.

The Reserve Bank of India (RBI) took decisive action on Thursday, revoking the certificates of registration for four non-banking financial companies (NBFCs) operating in West Bengal and Chandigarh. This includes entities like Gem Investments & Trading Co Pvt Ltd and Vistar Financiers.

The RBI exercised its regulatory authority, citing Section 45-IA (6) of the Reserve Bank of India Act, 1934, to enforce this measure. Additionally, four other NBFCs voluntarily surrendered their registrations due to diverse operational shifts, including mergers and meeting unregistered Core Investment Company criteria.

In a related move, the RBI imposed penalties on The Co-operative Urban Bank Limited, Parlakhemundi, Odisha, for non-compliance with central directives, such as unauthorized capital expenditure and inadequate customer credit information disclosure.

(With inputs from agencies.)