RBI Cancels Licences of 5 NBFCs and Accepts Surrenders from 8 Others Under Tightening Oversight

The Reserve Bank of India (RBI) has cancelled the Certificates of Registration (CoR) of five non-banking financial companies (NBFCs) and accepted the voluntary surrender of registration certificates from another eight entities. The supervisory action, executed under Section 45-IA (6) of the Reserve Bank of India Act, 1934, bars all 13 companies from conducting the business of a non-banking financial institution as defined under clause (a) of Section 45-I of the Act.

The regulatory move reflects the central bank’s persistent drive to enforce strict compliance norms, weed out non-functional or non-compliant shell entities, and facilitate an orderly exit for shadow banks undergoing corporate restructuring or changing their business models.

Five Licences Revoked for Regulatory Non-Compliance

The RBI cancelled the registrations of five NBFCs after they failed to meet statutory requirements and conditions governing their operational licences. Among these entities, four were based in Maharashtra and one in New Delhi:

• Rolta Holding and Finance Corporation Private Limited (Maharashtra)
• Vasudeo Securities Private Limited (Maharashtra)
• Parsoli Corporation Limited (Maharashtra)
• A. C. Choksi (Maharashtra)
• Dar's Financial Services Private Limited (New Delhi)

The revocation of these licences terminates their legal authority to collect deposits, disburse loans, or execute non-banking financial transactions under the RBI's regulatory umbrella.

Eight Entities Surrender Licences Across Multiple Categories

In parallel announcements, the banking regulator confirmed that eight NBFCs voluntarily surrendered their certificates. These voluntary exits were classified under distinct operational and structural categories recognised by the central bank:

NBFCs Exiting Financial Operations:

• Anupam Mercantile Limited
• Grand Motor and Finance Private Limited
• Sky Limit International Finance Limited
• ASA International India Microfinance Limited

These companies surrendered their certificates after taking formal corporate decisions to discontinue non-banking financial institution activities and transition out of the sector.

Reclassification and Exemption from Registration:

• CDN Finance Private Limited surrendered its CoR after meeting the eligibility norms for an Unregistered Type I NBFC, an entity category that does not accept public funds, does not provide customer interfaces, and is not required to maintain registration with the central bank.
• Other entities relinquished licences after qualifying under the framework for unregistered Core Investment Companies (CICs), which operate without the requirement of a standalone NBFC licence.

Corporate Restructuring and Dissolution:

• Shivam Securities Private Limited
• April Investment and Finance Private Limited

Both companies had their certificates formally rescinded because they ceased to exist as independent legal entities following amalgamations, mergers, dissolutions, or voluntary strike-offs.

Implications for Indian Markets and Depositors

Over the past three years, the Reserve Bank of India has progressively tightened the supervisory framework governing shadow banks, implementing Scale-Based Regulation (SBR), stringent anti-money laundering (AML) reporting mandates via FIU-IND's FINnet portal, and tighter governance guidelines for base-layer and middle-layer institutions.

For retail investors, high-net-worth individuals, and institutional lenders, this persistent enforcement highlights the need for ongoing due diligence. Entities losing registration are legally disqualified from taking deposits, managing financial assets, or offering credit facilities. Market participants transacting with non-bank lenders must regularly inspect the RBI’s updated registry of authorised NBFCs to protect against counterparty default risks and unauthorized shadow-lending practices.

Tags: Reserve Bank of India NBFCs Rolta Holding Parsoli Corporation Banking and Financial Services Non-Banking Financial Companies