RBI cancels registrations of 135 NBFCs; 13 firms voluntarily exit sector
12 Jun 2026, 06:32 PMThe latest action is part of the RBI’s ongoing efforts to strengthen oversight of the NBFC sector.
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The Reserve Bank of India (RBI) has revoked the registration certificates of 135 non-banking financial companies (NBFCs) across the country, with the majority of the affected entities based in West Bengal. The action also covers firms located in Maharashtra, Delhi, Telangana, Madhya Pradesh, Manipur and Assam.
The cancellations were carried out under Section 45-IA(6) of the RBI Act, 1934. The central bank said the affected firms failed to comply with regulatory requirements, did not meet the conditions under which their registrations were granted, or had stopped carrying out NBFC activities. As a result, they are no longer authorised to operate as non-banking financial institutions.
In a separate move, 13 NBFCs have voluntarily surrendered their registrations. According to the RBI, these companies either exited the NBFC business, became unregistered core investment companies that no longer required registration, or ceased to exist following mergers, amalgamations, dissolution or voluntary closure.
Among the companies whose registrations were cancelled are Toplight Tradelink, Essel Finance Business Loans, Citiwide Financial Services, Kiranglobal Business Investment and Uppal Credits and Investments, along with a large number of West Bengal-based firms.
The RBI did not disclose specific reasons for the cancellation of individual companies. It only stated that the action was taken using powers granted under the RBI Act.
The 13 firms that surrendered their registrations include J Thomas Finance, Hitesha Finance and Investment, Tinnevelly Tuticorin Investments and Impact Leasing. Some others lost their registration after merging with other entities or being struck off, while Forerunner Capital Investments surrendered its licence after qualifying as an unregistered core investment company.
The latest action is part of the RBI’s ongoing efforts to strengthen oversight of the NBFC sector and ensure that only companies meeting governance, operational and regulatory standards continue to operate. The central bank has repeatedly stressed that NBFC licences remain valid only as long as firms continue to comply with its rules and directions.
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