RBI Cancels Licences of 5 NBFCs as 8 Others Surrender Registrations Amid Regulatory Tightening

The Reserve Bank of India (RBI) has cracked down on non-compliant shadow lenders while streamlining registrations across the non-banking financial space, cancelling the licences of five non-banking finance companies (NBFCs) and processing the voluntary surrender of certificates for eight others.

The regulatory decisions, issued pursuant to powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, prevent the penalized companies from conducting the business of a non-banking financial institution (NBFI).

Entities Facing Licence Cancellations

The central bank revoked the Certificates of Registration (CoR) of five NBFCs on regulatory grounds, citing non-compliance with statutory conditions and cessation of operational activity.

The five entities whose registrations have been cancelled are:

• Dar's Financial Services Pvt Ltd
• Rolta Holding and Finance Corporation
• Vasudeo Securities
• Parsoli Corporation
• A C Choksi Financial Services

Following the cancellation order, these five entities are strictly barred from accepting deposits or transacting as non-banking financial institutions.

Breakdown of Voluntary Surrenders

In parallel notifications, the RBI confirmed that eight NBFCs have surrendered their registration certificates, which were consequently cancelled. The voluntary exits stemmed from strategic business shifts, corporate dissolutions, and regulatory reclassifications where separate NBFC licences were no longer required.

The RBI categorized the surrenders into three main groups:

1. Exit from NBFI Business

Four lenders voluntarily ceased their non-banking lending activities and chose to surrender their certificates:

• ASA International India Microfinance Ltd
• Anupam Mercantile Ltd
• Grand Motor and Finance Pvt Ltd
• Sky Limit International Finance Ltd

2. Corporate Amalgamation and Dissolution

Two entities surrendered their registrations after ceasing to exist as legal corporate entities as a result of mergers, liquidations, or voluntary strike-offs:

• April Investment and Finance Pvt Ltd
• Shivam Securities Pvt Ltd

3. Regulatory Exemptions and Structural Reclassifications

Two institutions surrendered their licences because their revised operational structures qualified them for registration exemptions under the RBI's specialized framework:

• Anagram Industries Ltd surrendered its registration after satisfying criteria to operate as an unregistered Core Investment Company (CIC).
• CDN Finance Pvt Ltd surrendered its certificate after meeting regulatory requirements as an unregistered Type-I NBFC, which does not require separate CoR registration.

Regulatory Context and Sector Impact

Over recent years, the RBI has progressively tightened regulatory oversight for shadow lenders to mitigate systemic risk, eliminate dormant corporate shells, and elevate standards around governance and capital adequacy.

For retail and institutional investors, the persistent pruning of non-operating and non-compliant entities strengthens institutional stability across India’s credit landscape, ensuring clearer distinctions between active, well-governed lenders and obsolete legacy structures.

Tags: Reserve Bank of India NBFC Sector Rolta Holding and Finance ASA International India Microfinance Indian Financial Regulations Shadow Banking