License cancelled: RBI took action against 7 non-banking financial companies, 11 NBFCs surrendered CoR, see list
In April, RBI has taken action against 7 non-banking financial companies. License of some has been cancelled and monetary penalty has been imposed on some. Let us know which NBFC is included in this list?
License cancelled: The Reserve Bank of India (RBI) has taken several big decisions in April. It has shown strictness on many banks and non-banking financial companies. This list includes 7 NBFCs. The license of 6 of these i.e. Certificate of Registration (CoR) has been canceled, which were located in different states of the country. A heavy monetary penalty has been imposed on one. At the same time, 11 NBFCs have surrendered their CoR themselves for various reasons.
After the cancellation of CoR, these companies are not allowed to continue business as a non-banking financial institution under clause (a) of section 45-I of the RBI Act 1934. They have been closed.
License of these companies of MP cancelled
The license of Unitara Finance Limited located in Transport Nagar Indore, Madhya Pradesh has been cancelled. RBI had issued COR to it on 20 February 1998. The company was asked to stop business from 24 March itself.
License of these companies also cancelled
- Thamiraparani Investments Private Limited, Chennai, Tamil Nadu
- Armusk Infrastructure Investments Limited, Chennai, Tamil Nadu
- Vishwapriya Finance Limited, Chennai, Tamil Nadu
- Matrix Financial Services Limited, Chennai, Tamil Nadu
- Welfil Securities Limited, Ahmedabad, Gujarat
See RBI order here
Penalty imposed on this company
RBI has imposed a penalty of Rs 71.30 lakh on Mahindra & Mahindra Financial Limited. A notice was issued in this regard on April 25. The company failed to disclose processing fees and other charges in some loan applications. Copies of the loan agreement were not submitted and loan details were not given to some borrowers in the sanction letters. Some borrowers were not given a last chance to repay the loan before the sale or auction of vehicles. Instead of a unique customer identification code (UCIC) for each individual customer, several customer identification codes were allotted to some customers. Violations in the rules were detected during the inspection. After which the central bank decided to impose a penalty. However, this will not affect the transactions taking place between the customers and the company.
These NBFCs surrendered the license
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