RBI cancels Certificate of Registration of 3 NBFCs (including 2 Housing Finance Companies)

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of Malik Motor Finance Limited under Section 45-IA(6) of the RBI Act, 1934. In the same release, RBI also cancelled the CoR of North East Region Housing Finance Company Limited and Aryarth Housing Finance Limited under Section 29A(6) of the National Housing Bank Act, 1987. The release does not specify the factual reasons behind the cancellations, but it makes clear that the entities may no longer transact business as a non-banking financial institution or, in the case of the housing finance companies, as a housing finance institution or NBFC. This is a complete withdrawal of authorization to operate in those regulated businesses.