RBI cancels registration of 31 NBFCs

MUMBAI: The RBI on Friday cancelled the certificates of registrations of as many as 31 NBFCs for unspecified reasons. It additionally cancelled the certificates of registrations of 17 NBFCs following a request by them for a similar. The motion comes amid difficulties faced by the NBFCs sector. A majority 27 of 31 companies which misplaced licences are from Bengal,the central financial institution stated in a observation.

Bengal is adopted by Uttar Pradesh, which has noticed 4 NBFC licence cancellations, the RBI stated, making it transparent that those companies must now not carry out industry actions from right here on. A majority of voluntary application for licence cancellation are also from Bengal, it stated. The record contains Ramky Finance & Investment, which is based in Hyderabad. It additionally has city-based Propycon Trading & Investments, in step with the RBI announcement.

It may also be famous that there are more than 12,000 registered NBFCs within the country below the regulation of the RBI, with a handful of them being deposit taking ones which might be regulated tightly. The NBFC sector is dealing with liquidity troubles following non-payment of dues by the troubled infra lender IL&FS since late August. RBI has blamed many NBFCs for borrowing brief for long-term assets, which ends up in potential asset liability mismatches particularly in occasions of accelerating charges where they face hassle refinancing their borrowings.
RBI cancels registration of 31 NBFCs RBI cancels registration of 31 NBFCs Reviewed by Kailash on November 11, 2018 Rating: 5
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