8 NBFCs surrender their Certificate of Registration to the RBI
Distilled Policy Brief
- Eight Non-Banking Financial Companies (NBFCs) surrendered their Certificate of Registration (CoR) to the Reserve Bank of India (RBI).
- The RBI cancelled the registrations by invoking powers under Section 45-IA (6) of the Reserve Bank of India Act, 1934.
- Reasons for surrender included exit from non-banking financial business, corporate amalgamations, and meeting specific exemption criteria for Core Investment Companies and non-public-facing Type I NBFCs.
🎯 Prelims High-Yield Examination Points
Section 45-IA (6) of the Reserve Bank of India Act, 1934 empowers the RBI to cancel the Certificate of Registration of an NBFC if it ceases to carry on business or fails to comply with statutory requirements.
⚖️ Mains Analytical & Syllabus Linkages
Demonstrates RBI's ongoing regulatory rationalization to eliminate dormant or exempt financial entities, optimizing regulatory bandwidth while maintaining oversight over systemic risk.
🎯 UPSC Prelims Practice Drill
With reference to the regulatory provisions governing Non-Banking Financial Companies (NBFCs) in India, consider the following statements: 1. The Reserve Bank of India (RBI) derives its power to cancel the Certificate of Registration (CoR) of an NBFC from Section 45-IA (6) of the Reserve Bank of India Act, 1934. 2. 'Unregistered Type I NBFCs' that do not require registration with the RBI are defined as entities that do not avail public funds and have no customer interface. 3. An NBFC can surrender its Certificate of Registration if it satisfies the criteria prescribed for an unregistered Core Investment Company (CIC). 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
All three statements are correct. Under Section 45-IA (6) of the RBI Act, 1934, the RBI has the statutory power to cancel the Certificate of Registration (CoR) of NBFCs. Unregistered Type I NBFCs that do not require registration are defined as those that do not avail public funds and do not have any customer interface. Furthermore, NBFCs may surrender their CoR upon meeting specific prescribed criteria for unregistered Core Investment Companies (CICs) or due to corporate restructuring and business exits.
🏛️ Historical Twin PYQ Anchor (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.