“The Reserve Bank has canceled the certificate of registration of the 26 non-banking financial companies. Following the cancelation of registration certificate, these companies cannot transact the business of a non-banking financial institution,” the RBI said in a notification.
A majority of the NBFCs belong to Kolkata, while others are based out of Delhi, Chennai, Mumbai, Pune Gujarat, Punjab, Uttarakhand and Rajasthan.
The Reserve Bank of India can cancel a certificate of registration granted to a non-banking financial institution on various grounds, including when a company ceases to carry on the business of an NBFC in India.
The registration is also liable to get canceled if the entity doesn’t comply with any condition subject to which the certificate of registration had been issued to it.