RBI · Ministry of Electronics & IT ·

10 NBFCs surrender their Certificates of Registration to the RBI

Distilled Policy Brief

  • Ten Non-Banking Financial Companies (NBFCs) have surrendered their Certificates of Registration (CoRs) to the Reserve Bank of India (RBI).

🎯 Prelims High-Yield Examination Points

Exemptions from registration under Section 45-IA of the RBI Act, 1934 for specific categories of NBFCs like Core Investment Companies (CICs) and Type I NBFCs.

⚖️ Mains Analytical & Syllabus Linkages

Regulatory framework of the shadow banking sector in India and the rationalisation of compliance requirements for NBFCs.

🎯 UPSC Prelims Practice Drill

Economy

Consider the following statements regarding the cancellation and surrender of the Certificate of Registration (CoR) of Non-Banking Financial Companies (NBFCs) in India: 1. The Reserve Bank of India (RBI) derives its power to cancel the CoR of an NBFC under Section 45-IA (6) of the Reserve Bank of India Act, 1934. 2. NBFCs that meet the criteria to be classified as unregistered Core Investment Companies (CICs) or unregistered Type I NBFCs do not require registration under Section 45IA of the RBI Act. 3. The cessation of an NBFC as a legal entity due to amalgamation, merger, or dissolution is a valid ground for the surrender and cancellation of its CoR. Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 2 and 3 only
  • [C] 1 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] 1, 2 and 3

All three statements are correct. Under Section 45-IA (6) of the RBI Act, 1934, the RBI is empowered to cancel the Certificate of Registration (CoR) of an NBFC. Valid grounds for the surrender and subsequent cancellation of the CoR include an NBFC meeting the criteria to be classified as an unregistered Core Investment Company (CIC) or an unregistered Type I NBFC (both of which are exempt from registration under Section 45IA), as well as the entity ceasing to exist due to amalgamation, merger, dissolution, or voluntary strike-off.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Classification of NBFCs: Indian Economy - Banking Sector: Types of NBFCs, their regulatory differences from commercial banks, and the role of Core Investment Companies (CICs).