RBI Cancels Registration of 35 NBFCs for Regulatory Non-Compliance
The Reserve Bank of India (RBI) has cancelled the certificates of registration of 35 Non-Banking Financial Companies (NBFCs) for failing to meet regulatory requirements. Consequently, these entities can no longer conduct any non-banking financial business in India.
According to an official RBI circular dated January 7, 2026, the central bank exercised its powers under Section 45-IA (6) of the RBI Act, 1934 to withdraw the registrations. Moreover, the regulator advised investors and depositors to verify the legal status of financial entities before engaging in any transaction.
The decision highlights RBI’s continuing push to strengthen financial discipline. Additionally, it reflects tighter supervision of NBFCs amid growing concerns over compliance, governance, and consumer protection.
RBI Circular Details and Legal Basis
In its notification, RBI stated that the affected companies failed to comply with mandatory regulatory norms. Therefore, the regulator cancelled their Certificates of Registration with immediate effect.
As per the circular, these firms are prohibited from carrying on the business of a non-banking financial institution, as defined under Section 45-I(a) of the RBI Act, 1934. Furthermore, RBI clarified that any violation of this directive could attract strict penal action.
Notably, RBI has increased scrutiny of NBFCs in recent years. This action aligns with earlier enforcement steps against entities that remained inactive, under-capitalised, or non-compliant. Hence, the move aims to protect financial stability and public interest.
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Full List: RBI Cancels Registration of 35 NBFCs
The following NBFCs have lost their registration:
- Satya Prakash Capital Investment Limited
- A G Securities Private Limited
- ALB Leasing & Finance Ltd.
- ATM Credit & Investments Pvt. Ltd.
- Corporate Capital Services India Private Limited
- Decisive Finance Private Limited
- Divine Investments Private Limited
- Liberty Pvt. Ltd Sales
- Pearls Hire Purchase Corporation Limited
- Quasar India Fincap Private Limited
- Sunlife Securities Private Limited
- Sunrise Manufacturing Co Ltd
- Swito Finance & Estates Private Limited
- Triveni Vinimay Private Limited
- Twenty First Century Marketing Ltd
- Unitron Finlease Limited
- Veera Securities and Finlease Private Limited
- Vini Financial and Management Consultants Private Limited
- Shivom Investment & Consultancy Limited
- Adhinath Investments Private Limited
- Agroha Savings Limited
- Ahusons Finance and Investments Private Ltd
- Altar Investment Pvt Ltd
- Associated Leasing Limited
- Atlantic Leasing Limited
- B H L Forex and Finlease Limited
- Bharatpuria Finance and Investment Limited
- Dada Dev Finance & Leasing Pvt. Ltd.
- East Delhi Leasing Private Limited
- Economic Capital Services India Private Limited
- ESN Finance and Capital Services Limited
- FMI Investments Private Limited
- Ganpati Fincap Services Private Limited
- Goodworth Securities Private Limited
- Gopal Overseas Private Limited
As a result, these companies must cease NBFC activities immediately.
What Is a Non-Banking Financial Company (NBFC)?
An NBFC is a company registered under the Companies Act, 1956 or 2013. It primarily engages in loans, advances, leasing, hire-purchase, and investment in securities. However, it does not include entities involved mainly in agriculture, manufacturing, trading of goods, or real estate services.
NBFCs play a vital role in credit delivery, especially in underserved sectors. Therefore, regulatory compliance remains essential for maintaining trust and systemic stability.
Why This RBI Action Matters to Investors
This development carries important implications for investors and borrowers. First, it reinforces RBI’s zero-tolerance stance on regulatory lapses. Second, it serves as a warning against dealing with unverified financial entities.
Moreover, RBI has urged the public to check the registration status of NBFCs on its official website before investing. This step helps reduce fraud risks and protects consumer interests.
In recent years, RBI has cancelled several NBFC registrations. Consequently, experts view this as part of a broader clean-up of the financial ecosystem.
Conclusion: Strengthening Financial Discipline
The decision to cancel registrations of 35 NBFCs underscores RBI’s commitment to regulatory discipline. Additionally, it signals stronger enforcement in the non-banking finance sector.
For investors, the message is clear. Always verify regulatory credentials. For NBFCs, compliance is no longer optional.