Majority of Deregistered NBFCs Found to Be Based in West Bengal

In a major regulatory action, the Reserve Bank of India (RBI) on Wednesday announced the cancellation of the certificates of registration of 135 non-banking finance companies (NBFCs).

According to an official release issued by the central bank, the affected entities have ceased to be authorised to carry on the business of a non-banking financial institution under the provisions of the Reserve Bank of India Act, 1934.

Among the companies whose registrations were cancelled are:

• Express Fincap House
• Akshay Fiscal Services
• Times Finance (P)
• Jupiter Projects (P)
• Jupiter Finvest
• Essel Finance Business Loans
• Citiwide Financial Services

Majority of Affected NBFCs Registered in West Bengal

The RBI release indicated that a majority of the NBFCs whose registrations were revoked had their registered office addresses in West Bengal.

The development highlights the central bank’s continued efforts to strengthen regulatory oversight of the non-banking financial sector and ensure compliance with prudential norms.

What the Cancellation Means

The cancellation of a Certificate of Registration (CoR) implies that the concerned entities:

• Can no longer undertake NBFC activities,
• Are prohibited from accepting public deposits or conducting lending operations as NBFCs, and
• Must cease operations requiring RBI authorisation unless permitted under other applicable laws.

The RBI periodically reviews the functioning and compliance status of NBFCs and takes supervisory action against entities found violating regulatory requirements or failing to meet prescribed conditions.

Strengthening Financial Stability

NBFCs play a vital role in India’s financial ecosystem by extending credit to segments that may have limited access to traditional banking services. However, they are also subject to regulatory scrutiny to safeguard depositors’ interests and maintain financial stability.

Analysts noted that the latest action reflects the RBI’s ongoing emphasis on maintaining discipline and transparency within the financial sector.

The central bank has, in recent years, tightened supervisory standards for NBFCs through enhanced disclosure norms, governance requirements, and risk management frameworks to ensure the resilience of the sector.

Further details regarding the specific reasons behind the cancellation of each entity’s registration were not immediately available in the RBI’s release.