RBI Cancels Registration of 2 NBFCs, while 4 NBFCs and 2 HFCs, including HDFC Surrender Certificates
Moneylife Digital Team 17 November 2023
As many as four non-banking financial companies (NBFCs) and two housing finance companies (HFCs) have surrendered their certificates of registration (CoR) to Reserve Bank of India (RBI) for various reasons. Separately, RBI has cancelled the registration of two NBFCs, New Delhi-based Todays Holdings Pvt Ltd and Tamil Nadu-based Integrated Finance Co Ltd. Following its merger with HDFC Bank, Housing Development Finance Corp Ltd (HDFC) surrendered its registration as HFC. 
While the central bank has not given any specific reason, in a statement, RBI says, "...in the exercise of powers conferred on it under section 45-IA (6) of the RBI Act, 1934, has cancelled the certificate of registration...As such, the two companies shall not transact the business of a non-banking financial institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act."
NBFCs who have surrendered registration certificates include Tamil Nadu-based Ford Credit India Pvt Ltd, Rajasthan-based Acoustic Commercial Pvt Ltd, Assam-based VSG Trade Pvt Ltd and Maharashtra-based Centrum Microcredit Ltd. HFCs which surrendered their registration include Maharashtra-based HDFC and Tamil Nadu-based National Trust Housing Finance Ltd.
According to RBI, two NBFCs and one HFC surrendered their registration certificates after deciding to exit from the non-banking finance business. While one NBFC and HFC each ceased operations following corporate actions such as amalgamation, dissolution, merger or voluntary strike-off. One NBFC has surrendered its registration certificate because it does not require registration under the criteria prescribed for an unregistered core investment company (CIC).
Tamil Nadu-based Ford Credit India Pvt Ltd and Rajasthan-based Acoustic Commercial Pvt Ltd surrendered their registration certificate. RBI issued an order to cancel their registration on 10 October 2023 and 19 October 2023, respectively.
RBI says the registration certificate of VSG Trade Pvt Ltd from Assam is cancelled from 3 October 2023. Maharashtra-based Centrum Microcredit Ltd's registration certificate is revoked on 25 October 2023.
The central bank issued another order to cancel the registration certificate of HDFC on 26 October 2023 while National Trust Housing Finance's registration was cancelled from 21 September 2023.
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