RBI blacklists one more NBFC; 17 NBFCs out of RBI’s list in one week

Mumbai, Jan 17 (KNN) The Reserve Bank of India (RBI) has blacklisted another Non-Banking Financial Company (NBFC) called Nupoor Capitals Private Limited while Aeonian Investments Company Limited has surrendered the certificate.

In a notification, the apex bank said, “RBI has cancelled the certificate of registration…in exercise of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.”

Aeonian Investments Company Limited is also Mumbai based NBFC.

Last week, RBI had cancelled the certificates of 7 NBFCs, while 8 NBFCs had surrendered their certificates to the apex bank.

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.

With funding remaining in the top of list of problems that the MSME sector faces, NBFC is a critical source to get funds.

However, according to India Ratings and Research last year the overall non-performing loans of NBFC sector was predicted to increase to 7.8 per cent in financial year 2016-17 from an estimated 6.7 per cent in the current fiscal.

"The overall gross NPA ratio of NBFCs across asset classes is likely to rise to 7.8 per cent by March 2017, from 6 per cent at end-September 2015 and an estimated 6.7 per cent in FY16," India Ratings and Research report had then said. (KNN Bureau)