Empowering MSMEs with News & Insights

4 NBFCs surrender certificates to RBI

Updated: Apr 26, 2018 06:45:33am

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.


    Be first to give your comments.


Required fields are marked *