The Reserve Bank of India announced on 17 September 2026 that it had cancelled the Certificates of Registration of five Non-Banking Financial Companies and accepted the surrender of certificates from eight other NBFCs. The five cancellations were imposed by the Reserve Bank under Section 45-IA(6) of the Reserve Bank of India Act, 1934, while the eight surrenders were initiated by the companies themselves. Together, the two lists change the RBI approved NBFC list for 2026 and show how firms exit, merge or move to registration exempt status.
What Is an NBFC and What Is an NBFC Licence?
A Non-Banking Financial Company, usually written as NBFC, is a company registered under the Companies Act, 1956 or Companies Act, 2013 that provides loans, advances, investments in shares and securities, hire purchase and leasing as its main business. NBFCs are registered with and regulated by the Reserve Bank of India (RBI), which functions as the central bank of India under the Reserve Bank of India Act, 1934.
An NBFC licence means the Certificate of Registration (CoR) issued by the Reserve Bank under Section 45-IA of the RBI Act, 1934. No company can start or continue the business of a Non-Banking Financial Institution (NBFI) without this certificate and without meeting the minimum capital rule. With effect from 1 October 2022, a company seeking fresh registration must have Net Owned Funds of ₹10 crore, while existing NBFCs have time until 31 March 2027 to reach that level.
A company is treated as an NBFC only when it meets the principal business criteria, commonly called the 50-50 test. This test says that more than 50 percent of total assets must be financial assets and more than 50 percent of gross income must come from those financial assets, as seen in the last audited balance sheet. A trading firm, manufacturer or real estate developer is therefore not an NBFC even if it gives occasional loans, because finance is not its main business.
RBI Action: Five Cancellations and Eight Surrenders
The Reserve Bank issued two separate press releases on 17 September 2026. In the first release, the Reserve Bank cancelled the Certificates of Registration of five companies in exercise of powers under Section 45-IA(6) of the RBI Act, 1934. In the second release, the Reserve Bank cancelled the certificates of eight other companies after those companies surrendered their certificates. The actual cancellation orders carry dates in August 2026, while the public announcement was made in September. After cancellation, a company cannot carry on the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Five NBFCs Whose Registrations Were Cancelled
The five companies in the cancellation list are based in Kolkata and Mumbai. Their registration numbers and cancellation dates are important for verification of the official list.
| Company Name | Location | CoR Number | CoR Cancelled On |
|---|---|---|---|
| Dar’s Financial Services Pvt Ltd | Kolkata, West Bengal | B.05.03300 | 3 August 2026 |
| Rolta Holding and Finance Corporation Private Limited | Mumbai, Maharashtra | 13.00540 | 6 August 2026 |
| Vasudeo Securities Pvt Ltd | Mumbai, Maharashtra | B-13.02235 | 6 August 2026 |
| Parsoli Corporation Limited | Mumbai, Maharashtra | B-13.01032 | 18 August 2026 |
| A. C. Choksi Financial Services Pvt Ltd | Mumbai, Maharashtra | N-13.01906 | 31 August 2026 |
These five cancellations were direct regulatory cancellations. The companies did not voluntarily return their certificates in this round, so the Reserve Bank withdrew the permission to operate as NBFCs.
Eight NBFCs That Surrendered Their Certificates
The eight surrenders fall into four clear groups. Four companies left the NBFI business, two stopped existing as legal entities, one qualified as an unregistered Core Investment Company and one qualified as an unregistered Type I NBFC.
| Company Name | Location | Reason For Surrender | CoR Cancelled On |
|---|---|---|---|
| Anupam Mercantile Limited | New Delhi | Exit from NBFI business | 4 August 2026 |
| Grand Motor and Finance Private Limited | New Delhi | Exit from NBFI business | 18 August 2026 |
| Sky Limit International Finance Limited | Guwahati, Assam | Exit from NBFI business | 19 August 2026 |
| ASA International India Microfinance Limited | Salt Lake, West Bengal | Exit from NBFI business | 31 August 2026 |
| Shivam Securities Private Limited | New Delhi | Ceased to exist as legal entity after amalgamation, merger, dissolution or strike off | 18 August 2026 |
| April Investment and Finance Private Limited | New Delhi | Ceased to exist as legal entity after amalgamation, merger, dissolution or strike off | 24 August 2026 |
| Anagram Industries Limited | New Delhi | Met criteria for unregistered Core Investment Company which does not need registration | 18 August 2026 |
| CDN Finance Private Limited | New Delhi | Met criteria for unregistered Type I NBFC which does not need registration | 20 August 2026 |
Why Did These NBFCs Lose Their Licences?
The September 2026 action involved two different legal paths that are often mixed up. Cancellation means the Reserve Bank withdrew the certificate. Surrender means the company returned the certificate and the Reserve Bank then cancelled it on record. Section 45-IA(6) allows cancellation when a company stops doing NBFI business, breaks conditions of registration, ignores directions, fails to maintain accounts or submit books for inspection, or remains barred from accepting deposits for three months or more.
The largest group in this round consists of companies that left the NBFI business. Anupam Mercantile, Grand Motor and Finance, Sky Limit International Finance and ASA International India Microfinance told the Reserve Bank that they no longer meet the 50-50 test or no longer wish to do finance as their main activity. In such cases the company may continue other lawful business, but it cannot use the NBFC tag or carry on lending and investment as an NBFC.
The second group involves companies that stopped existing as separate legal entities. Shivam Securities and April Investment and Finance ceased to exist because of amalgamation, merger, dissolution or voluntary strike off. When the company itself disappears or merges into another entity, the old Certificate of Registration cannot be used by anyone else, so the Reserve Bank cancels it to clean the register.
The third and fourth cases show how the registration rules allow genuine exemptions. Anagram Industries met the conditions for an unregistered Core Investment Company (CIC). A CIC is an NBFC that holds at least 90 percent of its net assets as investments and loans in group companies, with at least 60 percent in equity shares of group companies, and does not do other financial business. A CIC with assets below ₹100 crore, or with assets of ₹100 crore and above but without using public funds such as bank loans or market borrowings, does not need a Certificate of Registration and is called an unregistered CIC.
CDN Finance met the conditions for an unregistered Type I NBFC. This is a newer category for pure investment firms that work only with their own funds. Such a firm must have no public funds, no customer interface and assets below ₹1,000 crore and must follow that model as a long term business choice. Since the firm creates very low risk for depositors and the wider system, the Reserve Bank exempts it from registration under Section 45NC of the RBI Act, 1934. If the firm later takes public funds or starts dealing with customers, it must seek registration again.
NBFC Versus Bank: The Key Difference
Many readers mix up NBFCs and banks because both give loans and make investments. The legal powers and safety nets are different, and this difference explains why the Reserve Bank keeps a separate approved NBFC list and a cancelled NBFC list.
| Feature | Bank | NBFC |
|---|---|---|
| Demand deposits | Can accept savings and current deposits repayable on demand | Cannot accept demand deposits |
| Payment system | Part of the payment and settlement system and can issue cheques drawn on itself | Not part of the payment system and cannot issue cheques drawn on itself |
| Deposit insurance | Deposits covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to the notified limit | Deposit insurance is not available for NBFC deposits |
| Licence | Licensed under the Banking Regulation Act, 1949 | Registered under Section 45-IA of the RBI Act, 1934 |
| Regulation | Direct and detailed control over management, governance and operations | Regulation through NBFC master directions, scale based norms and supervision, with lighter touch for small non public fund entities |
This comparison also helps in understanding products. An NBFC loan, gold loan or microfinance loan may look like a bank loan, but the protection, grievance path and regulatory checks are not identical.
How to Check Whether an NBFC Is Registered With RBI?
The Reserve Bank maintains two live lists on its official website. The first is the list of NBFCs and Asset Reconstruction Companies registered with the Reserve Bank. The second is the list of NBFCs whose Certificates of Registration have been cancelled. A company that appears only in the cancelled list cannot legally operate as an NBFC.
The Reserve Bank updates these lists regularly and also issues press releases for fresh registrations, cancellations and surrenders. A person can search by company name or by CoR number, which is printed on the registration certificate in formats such as B-14.02847 or N-13.01906. The letter at the start shows the regional office that issued the certificate, while the numbers give a unique identity to the firm.
This check matters before taking a loan, placing a fixed deposit with a deposit taking NBFC or investing through an app that claims to be an RBI registered NBFC company. If a firm that must be registered is found doing lending or deposit business without a certificate, the Reserve Bank treats it as a violation of the RBI Act, 1934 and can impose penalty, fine or prosecution. Members of the public can report such firms to the nearest regional office of the Reserve Bank.
Key Takeaways
- The Reserve Bank announced on 17 September 2026 the cancellation of five NBFC Certificates of Registration and the surrender based cancellation of eight other NBFCs.
- All cancellations were made under Section 45-IA(6) of the Reserve Bank of India Act, 1934, with actual order dates between 3 August and 31 August 2026.
- The five directly cancelled firms were Dar’s Financial Services, Rolta Holding and Finance Corporation, Vasudeo Securities, Parsoli Corporation and A. C. Choksi Financial Services.
- Four surrendering firms exited the NBFI business, two ceased to exist after merger or dissolution, one became an unregistered Core Investment Company and one became an unregistered Type I NBFC.
- NBFC stands for Non-Banking Financial Company, which needs a Certificate of Registration from the RBI and must meet the 50-50 principal business test to operate legally.
