RBI Cancels Licences of 13 NBFCs, 10 Others Surrender Registrations: Full List and Key Details
The Reserve Bank of India (RBI) has cancelled the certificates of registration of 13 non-banking financial companies (NBFCs), while another 10 NBFCs have surrendered their registrations, according to announcements reported on October 9, 2026. The decisions represent two distinct categories of regulatory action: cancellation by the central bank and the surrender of registration by companies for reasons that include exiting the financial business, qualifying for exemptions or ceasing to exist as legal entities.
The development highlights the importance of regulatory oversight in India’s non-banking financial sector. However, it is important to understand that the cancellation of a company’s registration does not, by itself, establish that the company committed fraud or engaged in illegal activities.
RBI Cancels Registration of 13 NBFCs
The RBI has cancelled the certificates of registration of 13 companies under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The affected entities include companies with names associated with finance, trading, investments and other commercial activities.
According to published reports, 11 of the 13 companies are registered in West Bengal, while the remaining two are based in Tamil Nadu.
The companies whose registrations were cancelled are:
- Nakodar Finance Private Limited
- Ajitnath Steels Private Limited
- Astrol Dealcom Private Limited
- Bhagyashri Trading Private Limited
- Booh Finance Company Private Limited
- Britex Financial Services Private Limited
- Sajili Vinimay Private Limited
- Bhumika Fiscal Services Private Limited
- Blue Mount Exports Private Limited
- Delta Capital Market Limited
- Rajesh Fiscal Services Private Limited
- Sarla Finance Private Limited
- Shreyans Vyapaar Private Limited
Ajitnath Steels Private Limited is particularly notable because its name suggests a connection with the steel industry. Corporate records cited in published reporting list the company under the name Augment Finvest Private Limited. This illustrates why a company’s registered or historical name does not necessarily provide a complete picture of its current business activities.
The RBI has not publicly specified an individual reason for cancelling each of these 13 registrations in the announcement covered by the reports. It would therefore be inaccurate to attribute the action to a particular violation or allege wrongdoing by any one company without further evidence.
Ten NBFCs Surrender Their Registrations
In a separate set of decisions, 10 companies surrendered their certificates of registration. Such surrenders can happen for different reasons, and they should not automatically be interpreted as punitive action by the regulator.
The companies reported in connection with these surrenders are:
- Pragati Fincap Limited
- Rajlakmi Vanijya Private Limited
- Vivriti Capital Limited
- MSJ Colonising and Leasing Company Private Limited
- PKSL Investment Private Limited
- HCL Corporation Private Limited
- PCR Investments Limited
- Aparna Investment Private Limited
- Vandana Griha Nirman Limited
- Ramsisaria Builders Limited
The reasons differ across the group. Six companies reportedly surrendered their registrations after exiting the non-banking financial institution business. PCR Investments Limited qualified to operate as an unregistered core investment company, while Aparna Investment Private Limited met the criteria for an unregistered Type I NBFC.
Vandana Griha Nirman Limited and Ramsisaria Builders Limited ceased to exist as legal entities following events such as amalgamation, merger, dissolution or voluntary strike-off.
These distinctions matter because the regulatory status and circumstances of each company can be different, even when their names appear in the same announcement.
Why Does the RBI Regulate NBFCs?
Non-banking financial companies play an important role in India’s financial system. Depending on their registration and permitted activities, they can provide loans, finance assets, support businesses and undertake other financial activities.
NBFCs are particularly relevant to borrowers and businesses that require financing beyond the conventional banking system. They can serve different customer segments, including small enterprises and individuals who may not always find suitable products from traditional lenders.
At the same time, financial activities require appropriate oversight. The RBI’s regulatory framework establishes conditions for registration and continued operation, helping ensure that companies conducting regulated financial business meet applicable requirements.
Under Section 45-IA of the RBI Act, an NBFC generally needs a certificate of registration from the RBI to conduct the relevant non-banking financial institution business, subject to applicable statutory provisions and exemptions.
Registration is not simply a one-time formality. Companies must continue to comply with the rules and directions applicable to their activities. A company that no longer satisfies the relevant requirements, or whose registration is cancelled, cannot continue the regulated business covered by that registration.
What Does Cancellation Under Section 45-IA(6) Mean?
Section 45-IA(6) of the RBI Act provides the legal basis for cancellation of an NBFC’s certificate of registration in specified circumstances.
Once a registration is cancelled, the company is no longer permitted to carry on the non-banking financial institution business covered by the law. The consequences relate to its authority to conduct regulated financial activities.
However, cancellation should not be confused with the automatic closure of every aspect of a company’s operations. A company may have other lawful activities, obligations or assets, depending on its corporate status and the applicable law.
Likewise, the cancellation announcement alone does not establish that the company has defaulted on its obligations, defrauded customers or become insolvent. Those conclusions require separate evidence.
This distinction is especially important when reporting regulatory news because a licence cancellation can have different underlying circumstances.
Why Would an NBFC Voluntarily Surrender Its Licence?
There are several legitimate reasons why a company may no longer require an NBFC registration.
1. Exit from financial services
A company may decide to discontinue its lending or other regulated financial activities. If it no longer intends to conduct the business requiring registration, it may apply to surrender its certificate, subject to applicable requirements.
2. Qualification for an exemption
Some entities may meet the conditions for operating without NBFC registration under the applicable framework. The RBI’s reported decisions include a company qualifying as an unregistered core investment company and another meeting the criteria for an unregistered Type I NBFC.
Such exemptions are conditional. They do not mean that every company carrying out investment activities can automatically operate without registration.
3. Merger or amalgamation
When a company merges with another entity or is amalgamated into a different business, its separate legal existence or need for an individual registration may end.
4. Dissolution or voluntary strike-off
A company that has ceased to exist as a legal entity may no longer require its former NBFC registration. The appropriate regulatory records must reflect the change in status.
These explanations demonstrate why voluntary surrender and regulatory cancellation should be reported separately.
What Should Customers and Investors Do?
Customers and investors should verify the exact legal name of any company with which they have a financial relationship. Similar company names can lead to confusion, particularly when entities change names or operate through different corporate structures.
Borrowers with outstanding loans should review their agreements and follow verified instructions from the lender or any legally authorised successor. A change in regulatory status does not, by itself, mean that an existing repayment obligation has disappeared.
Anyone who has invested money with an affected entity should check the nature of the investment, the company’s current legal status and any official communication about outstanding obligations. It is also important to distinguish between an NBFC’s authority to accept public deposits and other forms of financial activity, because not all NBFCs are authorised to accept public deposits.
Investors should avoid making decisions based solely on a company name appearing in a regulatory announcement. They should consult official RBI notices, relevant corporate filings and, where necessary, qualified financial or legal professionals.
What Does the Latest RBI Action Indicate?
The cancellation of 13 NBFC registrations and the surrender of another 10 certificates draw attention to the continuing importance of regulatory supervision in India’s financial sector.
The numbers alone do not establish whether the wider NBFC industry is facing a crisis. Some companies have reportedly left the business voluntarily, while others qualified for exemptions or ceased to exist as legal entities. For the 13 companies whose registrations were cancelled, the published announcement does not provide a specific reason for each case.
The most useful approach is therefore to examine the circumstances of individual companies rather than treating all 23 cases as equivalent.
For consumers, the episode is a reminder to verify the registration and regulatory status of financial service providers before entering into new financial arrangements. For companies, it reinforces the need to understand whether their activities require RBI registration and to maintain compliance for as long as that registration is necessary.
Conclusion
The RBI’s latest action covers 23 NBFC registrations through two different routes: 13 registrations were cancelled, while 10 companies surrendered their certificates for a range of reported reasons. The distinction is essential to understanding the regulatory developments accurately.
The announcement reinforces the importance of compliance and transparency in India’s non-banking financial sector. Customers and investors should verify company-specific information before drawing conclusions, while businesses must ensure that their financial activities remain within the scope of the applicable regulatory framework.
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