RBI cancels registration of 5 NBFCs, 4 submit certificates

New Delhi, Apr 10 (KNN) As many as nine more Non-Banking Financial Companies (NBFC) have stopped functioning as RBI blacklisted five of them while four submitted their certificates to the apex bank.

In a notification, RBI said, “The Reserve Bank of India (RBI) has cancelled the certificate of registration of the… five Non-Banking Financial Companies (NBFCs) in exercise of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.”

These NBFCs are – Ahmedabad based Trupti Finance Private Limited and Gujarat Financial and Capital Limited (presently M/s Gujarat Financial and Capital Private Limited); Kolkata based Liza Tie-up Private Limited (presently known as M/s Torsa Finvest Private Limited); Jalandhar based Moga Finance Limited; and Jammu based Singh Finance Limited.

The 4 NBFCs to surrender their Certificate of Registration to RBI are – Kolkata based Times Tradelink Private Limited; Chandigarh based Saka Investments Private Limited; Mumbai based Tejumal Trading Private Limited; and Vadodara based Pancham Finlease Private Limited.

Meanwhile, according to a study report on NBFCs, in the last five years, non-banking financial companies (NBFCs) have witnessed a sharp 5% increase in their non-performing assets (NPAs) and the “static mood” of the realty sector is likely to further increase NPAs of the NBFCs.

The study was conducted by RBI.

A NBFC is a company incorporated under the Companies Act 2013 or 1956 and engaged in the business of loans and advances, acquisition of stocks, equities, debt etc, issued by the government or any local authority.

According to the RBI study on NBFCs, the bad loans of NBFCs work out to be around Rs 74,230 crore. However, the RBI study also attributes the change in NPA recognition norms as a reason for growing NPAs of NBFCs. (KNN Bureau)