The Reserve Bank of India has cancelled the registration of three non-banking finance companies, while six others have surrendered their certificates. As such these companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934, the apex bank said.
NBFCs are lending institutions that borrow money from banks or markets and further lend to their customers at slightly higher rates than traditional banks.
The three NBFCs whose registrations were cancelled are UP-based Abhinav Hire Purchase, Gurugram-based Jupiter Management Services and Assam-based NE Leasing and Finance.
The companies that surrendered their registration certificates are Noida-based Raghukul Trading, Varanasi-based Divya Tie-Up, New Delhi-based Girnar Investment, Andheri-based Choice International, and Jaipur-based Devyani Infrastructure and Credits and Guwahati-based JK Builders and Property Developers. They surrendered their certificate, after which the apex bank, under the Reserve Bank of India Act, 1934, cancelled their registrations.