RBI cancels certificate of registration of four NBFCs

RBI cancels NBFC certificate: The Reserve Bank of India (RBI) has announced the cancellation of the Certificate of Registration of four Non-Banking Financial Companies (NBFCs). This action comes under Section 45-IA (6) of the Reserve Bank of India Act, 1934, signifying regulatory measures undertaken by the central bank. The RBI has cancelled the certificate of registration of Kundles Motor Finance Private Limited in Bareilly, Uttar Pradesh, the company's CoR was issued on June 9, 2016. The cancellation order was issued on March 12, 2024.

In addition, the RBI also cancelled the certificate of registration with Nithya Finance Limited in Coimbatore, Tamil Nadu, the company received its CoR on October 14, 2003. Apart from Nithya Finance, the apex bank also called offBhatia Hire Purchase Pvt Ltd: With its office in Bathinda, Punjab, the company's CoR dates back to June 28, 2000. The cancellation order was issued by the RBI on March 19, 2024.

Similarly, the bank cancelled the certificate of registration ofJiwanjyoti Deposits and Advances Limited in Hamirpur, Himachal Pradesh, the company obtained its CoR on August 29, 2018. 

This move highlights the RBI's commitment to regulatory compliance and ensuring the integrity of the financial system. The cancellation of the Certificate of Registration implies that these NBFCs are no longer authorised to engage in regulated financial activities under the purview of the RBI.