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The Reserve Bank of India has taken strict action against non-banking financial companies that failed to follow rules. The central bank revoked the licenses of 35 NBFCs after finding serious gaps in compliance. This step shows RBI’s strong stand on discipline in the financial system.
The cancellations came into effect between December 9 and December 31, 2025. RBI used its legal powers under the RBI Act, 1934. After cancellation, these companies lost the right to run NBFC business. They must stop lending, borrowing, and accepting deposits without delay.
RBI found repeated violations in many of these firms. Several companies ignored basic rules linked to governance and financial reporting. Some failed to keep proper books of accounts. Others did not meet the conditions required to hold an NBFC license. RBI said such gaps create risks for customers and the wider financial system.
Most of the affected NBFCs operate from Delhi. Some firms also come from Maharashtra and other states. The list includes Satya Prakash Capital Investment Limited, Sunlife Securities Private Limited, and Shivom Investment and Consultancy Limited. RBI stated that these firms can no longer present themselves as registered NBFCs.
Along with forced cancellations, the RBI accepted license surrender from 16 NBFCs. These firms chose to exit the sector on their own. Eight companies shut down NBFC operations completely. Three firms qualified as Core Investment Companies that do not need registration. Five others stopped legal existence due to mergers or closures.
One important case involved Edelweiss Retail Finance Limited. The firm surrendered its license after merging with ECL Finance Limited in September 2025. This step formed part of a group restructuring plan.
RBI also restored the license of one NBFC. Social Leasing India Limited received its registration back after review by appellate authorities and courts. This case showed that corrective steps and legal review can still help firms that meet requirements later.
The action reflects tighter checks on the NBFC sector. RBI increased scrutiny after past failures and market stress. Between 2023 and 2025, the RBI took action against more than 60 NBFCs. These actions included fines, restrictions, and business bans. Common issues involved weak management systems and poor risk control.
RBI urged the public to stay alert while dealing with finance companies. The central bank advised checking the NBFC list on the official RBI website before any transaction. RBI stressed that cancelled firms must clear existing liabilities as per the rules.
This move sends a clear signal to the market. RBI expects strict compliance at all times. The regulator aims to remove weak and non-serious players from the system. The step supports financial stability and protects borrowers and investors.
The latest crackdown shows RBI’s focus on trust and transparency. Only firms that follow rules can remain part of India’s NBFC sector.
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