RBI cancels Certificate of Registration of Five NBFCs

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of five non-banking financial companies: Unichem Finance & Enterprises Private Limited, Shree Bhagwati Marketing Private Limited, Sureka Teknik Private Limited, Dintara Mercantile Private Limited (presently Royal Fintrade Private Limited), and Shimansu Vyaparik Kendra Ltd. The cancellation was taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The release does not state the specific misconduct or violations behind the cancellations, but it makes clear that after cancellation the companies cannot transact the business of a non-banking financial institution.