RBI cancelled the registration certificates of 135 NBFCs

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RBI cancelled certificates of 135 NBFC

Highlights

The Reserve Bank of India cancelled the registration certificates of 135 NBFC companies between April 2026 and May 2026, with most of the companies being from Kolkata and Howrah.
Key companies with cancelled registrations include Express Fincap House Private Limited, Essel Finance Business Loans Limited, and Citiwide Financial Services Limited.
This move has tightened licensing and compliance monitoring in the NBFC sector, making regulatory risks and stricter operational standards clear in the respective states.

This article was translated from the original. Read the original version by our correspondent here.

Cancellation Orders and Scope of Companies

RBI press release 2026-2027/428 states that the central bank has taken this action under Section 45-IA(6) of the RBI Act, 1934. The registration certificates of 135 companies listed, which were issued as NBFC, have been cancelled through separate orders between April 2026 and May 2026.

The list includes the highest number of companies from West Bengal, especially Kolkata and Howrah, while some entities have registered offices in Maharashtra, Delhi, Madhya Pradesh, Tamil Nadu, Telangana, Manipur, and Assam. Affected entities include companies such as Express Fincap House Private Limited, Akshay Fiscal Services Ltd, ETL Infrastructure Finance Limited, Kds Micro Credit Services Pvt Ltd, Essel Finance Business Loans Limited, and Citiwide Financial Services Limited.

RBI has clarified that after the cancellation of registration, these entities cannot conduct business as non-banking financial institutions. The release is signed by Chief General Manager Brij Raj.

Regulatory Impact on the NBFC Sector

This step demonstrates that RBI is strictly enforcing licensing and compliance monitoring in the NBFC sector, especially for entities whose regulatory status is no longer considered valid. This large-scale action is a signal to market participants that maintaining registration, operational eligibility, and compliance with regulatory standards is of central importance in the sector.

The regional impact is more pronounced in those states where the concentration of listed entities is higher, particularly in West Bengal. For investors, borrowers, and business partners, this change signals that it is now more important to check the current regulatory status of any NBFC before transacting with them.

Our previous report focused on the record dates set for final dividends by major banks in June and the details of their payment. It covered the dividend proposals of Indian Bank, HDFC Bank, Canara Bank, PNB, and IndusInd Bank, and also mentioned that activity in banking shares may increase around the record dates and that eligibility/timing remains important for investors.

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