RBI blacklists 7 NBFCs, 8 surrender their certificates

Mumbai, Jan 12 (KNN) The Reserve Bank of India (RBI) has cancelled the certificates of 7 Non-Banking Financial Companies (NBFCs), while 8 NBFCs have surrendered their certificates to the apex bank.

RBI said the companies cannot transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.

The NBFCs whose Certificates have been cancelled are – Jalandhar (Punjab) based Virk Hire Purchase Limited; New Shimla (Himachal Pradesh) based Thakar Investments Limited; Katni (Madhya Pradesh) based Trackway Securities and Finance Private Limited; Mumbai based Jindal Integrated Lea-Co-Fin Limited (Presently Kashyap Tele-Medicines Limited); Mumbai based Kolon Investment Private Limited; Ahmedabad based Vax Housing Finance Corporation Limited; and Katni (Madhya Pradesh) based Ankit Tracom Private Limited.

The 8 NBFCs who have surrendered their Certificates are – Kolkata based Jai Matadi Finance Company Limited, Dabriwala Banijya Udyog Limited, Sunflower Commerce Limited (Presently Sunflower Commerce Private Limited); New Delhi based Reetu Finlease Private Limited; and Mumbai based Focus Holdings Private Limited, Hawcoplast Investments & Trading Limited, Narind Finvest Private Limited, Krishnadeep Trade & Investment Limited (Now Parnax Lab Limited).

Meanwhile, in December last year, RBI has proposed setting up of an ombudsman specifically for NBFCs. This is part of a series of reforms the regulator is planning, RBI had said in its Trends and Progress of Banking in India report.

An ombudsman could allow customers to lodge complaints against NBFCs for levying charges without prior notice, non-observance of RBI directives on interest rates, non-acceptance of applications for loans without valid reasons or non-compliance of guidelines on engaging recovery agents. For banks, the ombudsman was appointed two decades ago. (KNN Bureau)