The Reserve Bank of India has cancelled the registration of 135 non-banking finance companies, as reported by The Economic Times, ANI, Rediff Moneynews, and latest reports confirming the action was taken between April 2026 and May 2026. Additionally, 13 other companies have surrendered their licenses to the central bank. These actions are attributed to various reasons including exiting the business or ceasing to be legal entities. The regulatory move significantly impacts the financial landscape and represents one of the largest NBFC regulatory actions in recent times.
Among the cancelled companies are several well-known NBFCs including Express Fincap House Private Limited, Akshay Fiscal Services Ltd, ETL Infrastructure Finance Limited, Kds Micro Credit Services Pvt Ltd, Essel Finance Business Loans Limited, and Citiwide Financial Services Limited, according to The Economic Times, ANI, Rediff Moneynews, and latest reports. The latest data confirms that most of the companies are from Kolkata and Howrah, with the majority of NBFCs whose certificates were cancelled having a registered office address in West Bengal. The list includes the highest number of companies from West Bengal, while some entities have registered offices in Maharashtra, Delhi, Madhya Pradesh, Tamil Nadu, Telangana, Manipur, and Assam. The RBI clarified that following the cancellation of their Certificates of Registration, these companies shall not carry on the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
Separately, 13 non-banking finance companies have surrendered their certificates of registration to the central bank due to various reasons, as reported by The Economic Times, ANI, Rediff Moneynews, and latest reports. J. Thomas Finance, Econ-Super Sales, Hitesha Finance and Investment, Tinnevelly Tuticorin Investments, Carnex Vinimay, and Impact Leasing surrendered their licences due to exit from Non-Banking Financial Institution business. Forerunner Capital Investments' licence was surrendered due to meeting the criteria prescribed for unregistered Core Investment Company (CIC) that do not require registration.
According to The Economic Times, ANI, Rediff Moneynews, and latest reports, NBFCs such as Caspian Impact Investments, Hari Darshan Sales, Ivory Consultants, SKA Consultancy Services, Trishita Management, and Suban Trades surrendered their licence due to the NBFC ceasing to be a legal entity due to amalgamation/merger/dissolution/voluntary strike-off. The latest data confirms that the cancelled entities had originally received their Certificates of Registration between 1998 and 2022, with some companies having operated as NBFCs for several years before their registrations were withdrawn. The RBI clarified that following the cancellation of their Certificates of Registration, these companies shall not carry on the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
The action covers NBFCs across multiple states, with the regional impact being more pronounced in West Bengal, particularly Kolkata and Howrah, as confirmed by ANI, Rediff Moneynews, and latest reports. Apart from West Bengal-based companies, the RBI's order also covers a few NBFCs from Maharashtra, Telangana, Delhi, Manipur, Tamil Nadu and Madhya Pradesh. Among the out-of-state entities are Essel Finance Business Loans Limited in Mumbai, Citiwide Financial Services Limited in Hyderabad, and Kiranglobal Business Investment Limited in Chennai. The regulatory action reflects the central bank's ongoing efforts to maintain financial sector integrity and ensure compliance with regulatory requirements across the non-banking finance sector. For investors, borrowers, and business partners, this change signals that it is now more important to check the current regulatory status of any NBFC before transacting with them.
