On October 17, 2024, the Reserve Bank of India had, in exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, issued Directions to Navi Finserv Limited, Bengaluru (and three other NBFCs), to cease and desist from sanction and disbursal of loans, effective from close of business of October 21, 2024.

The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies. Sr. No. Name of the Company Registered Office Address CoR No. CoR Issued On Cancellation Order Date 1 Ulhas Securities Private Limited Q-202, Coral, Parshwanath Atlantis Park, Near Balaji Agora Mall, S.P. Ring Road, Gandhinagar, Gujarat - 382424 N.01.00462 December 08, 2003 September 24, 2024 2 Sikar Investment Co Ltd Shri Ramji Sadan, 30-B, New Civil Lines, Bharatpur City, Bharatpur, Rajasthan -321001 10.00029 March 06, 1998 October 07, 2024 As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934. 

The following Six Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR.

The Reserve Bank of India has today, in exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, issued Directions to the following NBFCs to cease and desist from sanction and disbursal of loans, effective from close of business of October 21, 2024:

The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies.

The following seven Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR.

The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies.

The following 13 Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR.

    It has come to the notice of the Reserve Bank of India that unscrupulous elements are using various methods to defraud members of the public by using the name of RBI in some capacity. A brief on various modus operandi employed by such fraudsters is as below

In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following Non-Banking Financial Company (NBFC): Name of the NBFC Registered Office Address CoR No. & Date Date of Cancellation Margdarshak Financial Services Limited 118, Dayal Farms, Ganeshpur - Rehmanpur, Chinhat-Deva Road, Lucknow, Uttar Pradesh – 226019 B-12.00364 dated March 22, 2011 August 20, 2024

The following Eight Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR.

The Reserve Bank of India has today, issued three revised Master Directions on Fraud Risk Management for the Regulated Entities viz. (i) Commercial Banks (including Regional Rural Banks) and All India Financial Institutions; (ii) Cooperative Banks (Urban Cooperative Banks / State Cooperative Banks / Central Cooperative Banks); and (iii) Non-Banking Finance Companies (including Housing Finance Companies).

The Reserve Bank held a Conference for the Statutory Auditors and Chief Financial Officers (CFOs) of Commercial Banks and All India Financial Institutions on July 9, 2024, in Mumbai. The Conference was a part of the series of supervisory engagements that the Reserve Bank has proactively been having with key stakeholders. The theme of the Conference was ‘Shared Vision, Shared Responsibility: Advancing Assurance in Banking Supervision’. The Conference was attended by over 300 participants.

In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following Non-Banking Financial Company (NBFC): Name of the NBFC Registered Office Address CoR No. CoR Issued On Name of the services provider/mobile app Star Finserv India Limited 8-2-268/K/35, Plot No. 35, Navodaya Colony, Road # 2 Banjara Hills, Hyderabad, Telangana B-09.00208 September 04, 2015 Progcap (owned and operated by Desiderata Impact Ventures Private Limited).

In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following Non-Banking Financial Company (NBFC): Name of the NBFC Registered Office Address CoR No. CoR Issued On Name of the services provider/mobile app Polytex India Ltd 5th Floor, 5B, Technopolis Knowledge Park, Mahakali Caves Road, Near Udyog Bhavan Chakala, Andheri (E), Mumbai, Maharashtra - 400093 13.00039 February 20, 1998 ‘Z2P’ mobile application (owned and operated by Zaitech Technologies Private Limited). As such, the above company shall not transact the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934.

The following Nine Non-Banking Financial Companies (NBFC) have surrendered the Certificate of Registration (CoR) granted to them by the Reserve Bank of India (RBI). The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their CoR. i) Due to exit from Non-Banking Financial Institution (NBFI) business: Sr. No. Name of the Company Registered Office Address CoR No. CoR Issued on Date of cancellation of CoR 1 Vigfin Holdings Private Limited New No. 24, Old No. 15, Yogambal Street, T Nagar, Chennai, Tamil Nadu – 600 017 B-07.00369 February 27, 2002 May 06, 2024 2 Strip Commodeal Pvt Ltd Haute Street, 86A, Topsia Road South, 2nd Floor, Kolkata, West Bengal - 700046 B-05.05669 October 16, 2003 May 09, 2024

The Reserve Bank had issued ‘Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank’ dated March 21, 2024, wherein broad parameters, viz., objectives, responsibilities, eligibility criteria, governance standards, application process, etc., were specified. It was also stated that other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately whenever a sectoral SRO is intended to be set up.

The Reserve Bank of India has today, in exercise of its powers under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) and the Reserve Bank of India Act, 1934 imposed business restrictions on the following supervised entities respectively, belonging to the Edelweiss Group. The Reserve Bank has directed: (i) ECL Finance Ltd (ECL) to cease and desist, with immediate effect, from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/ or closure of accounts in its normal course of business. (ii) Edelweiss Asset Reconstruction Company Limited (EARCL) to cease and desist from acquisition of financial assets including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.

The Reserve Bank today held a Conference in Mumbai for the Directors and MD/ CEOs of Asset Reconstruction Companies (ARCs). The conference was attended by over 80 participants representing all 27 ARCs. This event, with the theme ‘Governance in ARCs – Towards Effective Resolutions’, is a part of the series of supervisory engagements the Reserve Bank has been organising over the last one year with its Regulated Entities. As part of this series, the Conference for the Board of Directors and MD/ CEOs of Scheduled Commercial Banks and Urban Co-operative Banks were held earlier.

The Reserve Bank today held a Conference in Mumbai for the Heads of Assurance Functions (i.e., Chief Compliance Officers, Chief Risk Officers and Heads of Internal Audit) of select Non-Banking Financial Companies (NBFCs). The conference was attended by about 280 participants representing more than 100 NBFCs. This event, with the theme ‘<i>Resilient Financial System – Role of Effective Assurance Functions</i>’, is a part of the series of supervisory engagements the Reserve Bank has been organising over the last one year with its Regulated Entities. As part of this series, the Conference for the Heads of Assurance Functions of Scheduled Commercial Banks was held earlier in January 2024.