7 non banking finance companies licence suspended by the RBI

The Reserve Bank of India suspends the licence of 7 non banking finance companies. The 7 NBFCs whose licences were suspended that are:

• Religare Finance


• Artisans Micro Finance


• The Eden Trade and Commerce


• RCS Parivar Finance


• Nott Investments


• Dewra Stocks


• Securities, Swetasree Finance.

Religare Finance company licence was suspended by Reserve Bank of India(RBI) as it did not conducted lending operation for long period of time.

Reserve Bank of India role in issuing licence to the NBFCs:

• A Non Banking Financial Company is a company registered by the govt. under the Companies Act, 1956, whose principal business is lending, investments and receiving deposits.


• At present there are around 12 Thousand (NBFCs) in India. (NBFC) does not include any institution whose principal business is agricultural activity, trading, industrial activity or sale/purchase/construction of the immovable property.


• Reserve Bank of India has power under the RBI Act 1934 to register, regulate, lay down policy, inspect, issue directions, supervise and exercise surveillance over the (NBFCs) that meet the 50-50 criteria of principal business.


• Any (NBFCs) that doesn’t carry out its principal business according to the directions or orders issued by (RBI) under (RBI) Act is eligible for penal action that can also result in cancelling the Certificate of Registration issued to the (NBFC).

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7 non banking finance companies licence suspended by the RBI