Published: 9 June 2026Business StandardEconomy
RBI Cancels Certificates of Registration of 135 NBFCs Across India
The Reserve Bank of India (RBI) on June 10, 2026, cancelled the Certificates of Registration (CoR) of 135 Non-Banking Financial Companies (NBFCs) across India. The action was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934, which empowers the central bank to cancel registrations granted to NBFCs for reasons including non-compliance with regulatory requirements, failure to carry on NBFC business, or breach of conditions attached to registration.
Of the 135 entities whose CoRs were cancelled, a significant majority — 125 — had their registered offices in West Bengal, primarily in Kolkata and neighbouring areas. The remaining 10 were spread across Maharashtra (4), Delhi (2), Madhya Pradesh (1), Manipur (1), Tamil Nadu (1), and Telangana (1).
Among the notable entities whose registrations were cancelled are Express Fincap House, Akshay Fiscal Services, Times Finance (P), Jupiter Projects (P), Jupiter Finvest, Essel Finance Business Loans, and Citiwide Financial Services. The CoRs of these companies had originally been granted between 1998 and 2022.
In a separate but related development, 13 NBFCs voluntarily surrendered their Certificates of Registration to the RBI. The surrenders were on account of various reasons including exiting the NBFC business, amalgamation, merger, dissolution, and voluntary strike-off from the Register of Companies.
This large-scale cancellation reflects the RBI's continued focus on strengthening the NBFC regulatory framework, weeding out dormant or non-compliant entities, and ensuring only active, rule-abiding players remain in the financial ecosystem. The NBFC sector plays a crucial role in financial inclusion, particularly in semi-urban and rural areas, making robust regulation essential to protect depositors and borrowers alike.
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Practice MCQ from this story
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Linked questionMedium
With reference to the RBI's cancellation of Certificates of Registration (CoR) of 135 NBFCs in June 2026, consider the following statements:
1. The cancellations were made under Section 45-IA(6) of the Reserve Bank of India Act, 1934.
2. The majority of the cancelled NBFCs had their registered offices in Maharashtra.
Which of the statements given above is/are correct?
Explanation · Correct answer AStatement 1 is correct: RBI invoked Section 45-IA(6) of the RBI Act, 1934 — this is the specific provision that empowers RBI to cancel a Certificate of Registration granted to an NBFC. Statement 2 is incorrect: The majority (125 out of 135) of the cancelled NBFCs were based in West Bengal, not Maharashtra. Maharashtra had only 4 entities. Hence only statement 1 is correct.
Frequently asked questions
Under which legal provision did RBI cancel the NBFC registrations?
RBI invoked Section 45-IA(6) of the Reserve Bank of India Act, 1934, which empowers it to cancel the Certificate of Registration granted to an NBFC.
How many NBFCs had their CoR cancelled in June 2026, and which state had the most?
RBI cancelled CoRs of 135 NBFCs. West Bengal had the highest number with 125 entities, followed by Maharashtra (4) and Delhi (2).
What is the difference between cancellation and surrender of CoR?
Cancellation is a regulatory action by RBI against non-compliant entities; surrender is voluntary, initiated by the NBFC itself when exiting business, undergoing merger, dissolution, or voluntary strike-off.
Name some NBFCs whose registrations were cancelled.
Express Fincap House, Akshay Fiscal Services, Times Finance (P), Essel Finance Business Loans, Jupiter Projects (P), Jupiter Finvest, and Citiwide Financial Services.
What does cancellation of CoR mean for an NBFC?
Once a CoR is cancelled, the entity can no longer legally carry on the business of a Non-Banking Financial Company, i.e., it cannot accept deposits or carry on lending/investment activities as an NBFC.