RBI cancels Certificate of Registration of 3 NBFCs (including 2 Housing Finance Companies)

Jun 09, 2022 06:00 pm

By Hiral Shah

The Reserve Bank Of India today cancelled the licenses of 3 Non Banking Finance Companies (NBFC). Two of these are Housing Finance Companies.

The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934 cancelled the Certificate of Registration (CoR) of Malik Motor Finance Limited based in Noida Uttar Pradesh.

Further, the RBI, in exercise of powers conferred on it under Section 29A (6) of the National Housing Bank Act, 1987, has cancelled the CoR of North East Region Housing Finance Company Limited based in Mizoram and Aryarth Housing Finance Limited based in Gurgaon, Haryana.

As such, the above company shall not transact the business of a Non-Banking Financial Institution or Housing Finance Institution. The specific reason for the action has not been clearly defined.

Also today 2 NBFCs have surrendered the Certificate of Registration (CoR) granted to them by the RBI. This includes Empower India Capital Investments Private Limited based in Kerala and Mangalmayee Garments Private Limited (Presently known as Abhijeet Ferrotech Limited) based in West Bengal.