RBI Cancels Registration Certificate Of 31 NBFCs Amid Liquidity Crisis

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    On November 9, the Reserve Bank of India has cancelled the registration certificate of 31 Non-banking finance companies (NBFCs) without giving any reasons. Also it cancelled the certificate of registrations of 17 NBFCs after these companies made a request for the same.

    RBI Cancels Registration Certificate Of 31 NBFCs Amid Liquidity Crisis
     

    In a statement, the apex bank clarified that majority of these NBFCs i.e. 27 out of the 31 whose licenses have been cancelled are from Bengal. Other 4 NBFCs are from the state of Uttar Pradesh and it has been put forth that from now on these companies cannot engage in business activities.

    Also, most of the voluntary applications for NBFC registration cancellation are from Bengal. The list of NBFCs that lost license includes Hyderabad-based Ramky Finance & Investment, Propycon Trading & Investments etc.

    The cancellation of certificate of registration of these NBFC companies comes amid liquidity crisis faced by the sector following non-payment of dues by the troubled infrastructure lending company IL&FS.

    Under RBI's control, there are over 12,000 registered NBFC companies in India and deposit-taking ones are being regulated tightly.

    With PTI Inputs

    Read more about: rbi nbfc liquidity il ampfs
    Story first published: Saturday, November 10, 2018, 11:39 [IST]
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