The Reserve Bank of India (RBI) has cancelled the licences of 54 NBFCs, barring them from carrying out financial business.
The central bank said it acted under its powers under Section 45-IA(6) of the RBI Act, 1934, which allows it to cancel or accept the surrender of licences of NBFCs when they do not meet regulatory requirements.
A large number of these companies whose licenses were cancelled were based in Delhi, with others located in Haryana, West Bengal, and Telangana. Some of the entities whose licences were cancelled include Chefair Impex Ltd., Umeed Leasing & Finance Limited, Zafonic Finlease & Investments Private Ltd, and Tulip Investments Private Limited.
The RBI did not specify the reasons for cancelling the licences of these 54 entities.
In a separate action, the RBI also accepted the surrender of licences of 16 NBFCs that chose to shut down their operations.
The RBI said these companies voluntarily gave up their licences. Some exited the NBFC business, some no longer required a licence, while others ceased to exist due to mergers, closure, or being struck off.
These entities were based in cities such as Mumbai, Delhi, Kolkata and others.
Notable names include HDFC Investments Limited, Nalwa Trading Limited and UBS Finance India Private Limited.