4 NBFCs surrender certificates to RBI
New Delhi, Apr 26 (KNN) As many as four Non-Banking Financial Companies (NBFCs) have surrendered their certificates of registrations to the Reserve Bank of India (RBI).
RBI said these NBFCs shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Kolkata, West Bengal based Pallavi Resources Limited and Mendarian Enterprises Limited and Chennai, Tamil Nadu based Mithra Investments and Business Syndicate Private Limited and Angirasa Holdings & Business Syndicate Private Limited have surrendered their certificates.
The tightening of the NPA norms for NBFCs, announced by the RBI in 2014, has led to a steady deterioration in asset quality for NBFCs over the past three years.
Until 2014-15, NBFCs recognised the loans-- where borrowers have defaulted in their payments for 180 days or more-- as NPAs. In a bid to bring the asset classification norms on par with banks (90-day cut off), the RBI directed NBFCs to implement tighter NPA norms in a phased manner—150 days by end of March 2016, 120 days by end of March 2017 and 90 days by end of March 2018.