The Reserve Bank of India (RBI) announced on May 10th that 15 non-banking financial companies (NBFCs) have surrendered their certificates of registration. These companies are exiting the NBFI business for various reasons.
- Six NBFCs Cease Operations: These companies, including Vian Growth Capital and A. V. B. Finance, have chosen to exit the NBFI industry altogether.
- Nine NBFCs Undergo Legal Restructuring: The remaining nine companies have ceased to be legal entities due to mergers, acquisitions, dissolutions, or voluntary closure. This group includes prominent names like Tata Capital Financial Services and Jodhani Management.
Following the surrender of registrations, the RBI has cancelled the Certificates of Registration (CoR) of all 15 NBFCs. This action ensures they can no longer operate as financial institutions.
The RBI assures that this development is unlikely to significantly impact consumers. Consumers who may have had dealings with these NBFC should directly contact the respective companies for any outstanding issues.
