Mumbai (Maharashtra) [India], June 10 (ANI): The Reserve Bank of India (RBI) has cancelled the Certificates of Registration (CoR) of 135 Non-Banking Financial Companies (NBFCs), with a large number of the affected entities registered in Kolkata and other parts of West Bengal.

In a press release issued on June 10, the central bank said it had cancelled the registrations under powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934. The action covers NBFCs across multiple states, although a majority of the companies listed are based in Kolkata and neighbouring areas of West Bengal.

The list includes firms such as Akshay Fiscal Services Ltd, Alfa Tie-Up Private Limited, Arihant Enterprises Ltd, Destiny International Limited, Eastern Synthetics Pvt Ltd, ETL Infrastructure Finance Limited, Gateway Fincons India Ltd, KPS Finance & Trade (P) Ltd, Lifetime Financial Services Ltd and several other entities operating from Kolkata.

Apart from West Bengal-based companies, the RBI's order also covers a few NBFCs from states such as Maharashtra, Telangana, Delhi, Manipur, Tamil Nadu and Madhya Pradesh. Among them are Essel Finance Business Loans Limited in Mumbai, Citiwide Financial Services Limited in Hyderabad and Kiranglobal Business Investment Limited in Chennai.

The cancelled entities had originally received their Certificates of Registration between 1998 and 2022, according to details provided by the central bank. The list includes companies that had been operating as NBFCs for several years before their registrations were withdrawn.

The RBI clarified that, following the cancellation of their Certificates of Registration, these companies shall not carry on the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.

'As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934,' the RBI said in its notification.

The latest action forms part of the RBI's ongoing supervisory and regulatory oversight of the non-banking financial sector, under which entities failing to meet regulatory requirements can face cancellation of registration and restrictions on carrying out NBFC activities. (ANI)