RBI cancelled Certificate of Registration of six NBFCs
RBI has cancelled certificate of registration of six NBFCs with which they cannot be able to conduct business of non-banking financial institution.
The Reserve Bank of India (RBI) on 28 July 2014 cancelled the certificate of registration of six non-banking financial company (NBFCs). With this cancellation, these six NBFCs based in Delhi would not be able to conduct business of non-banking financial institution.
These six non-banking financial company (NBFCs) whose cancellation of registration certificate has been issued are
• GE Strategic Investments India (GESII)
• Profound Exports Private Limited
• Two Brothers Holding Limited
• Swank Services Private Limited
• Praxis Consulting and Information Services Private Limited
• Credible Microfinance Ltd. (formerly known as "Credible Securities & Finance Pvt. Ltd.")
However, reason for the cancellation of registration was not disclosed by RBI.
Power granted to RBI to cancel registration certificate of NBFC
The registration certificate of a non-banking financial company can be cancelled by RBI under the powers conferred under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The business of a non-banking financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.