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15/10/2018 02:39pm

Registrations of more NBFCs cancelled

image Registrations of more NBFCs cancelled

New Delhi, Oct 15 (KNN) The Reserve Bank of India (RBI) has cancelled certificates of as many as 31 Non-Banking Financial Companies (NBFCs). In the current month, so far certificates of total 59 NBFCs have been cancelled.

Out of the 31 NBFCs whose registrations were cancelled 15 were from West Bengal, 3 from Uttar Pradesh, 1 from Chennai and rest of them were from Delhi.

In a notification, RBI said, “These companies 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.”

Meanwhile, according to a media report in a separate matter, Finance Industry Development Council (FIDC), a self-regulatory organization for NBFCs, has decided to meet the Reserve Bank of India (RBI) and write to the government for support amid restricted access to capital.

Through the letter, FIDC will ask for some extra financing support to NBFCs.

As a cautionary measure, the central bank has started an inspection of several NBFCs to assess their exposure to high-risk assets.

While the RBI has stepped up to tighten norms for the NBFCs to address the mismatch in their assets and liabilities, the sector hopes that the central bank, along with the government, will come to the rescue to ease the concerns for the stable players.

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