Skip to content
Free updates Login
BankingNABARD / RBI

RBI Cancels 35 NBFC Registrations Over Non-Compliance

9 January 20261 min read
BANKING & FINANCERBI Cancels 35NBFCRegistrations OverNon-Compliance9 January 2026safalsetu.com

Why in the news

The central bank removed 35 non-banking finance companies from its register for regulatory lapses.

Key facts

  • The firms can no longer carry out NBFC business.
  • 16 others gave up registration due to exit, restructuring or reclassification.

Reasons

  • Shortfall in minimum net owned fund.
  • Missing or irregular statutory returns.
  • Breach of prudential and governance norms; inactivity.

About NBFCs

They offer loans, asset financing, investments and microfinance, but cannot take demand deposits.

Exam angle

  • Provision: Section 45-IA(6).

Test yourself

1. Under which provision did the RBI cancel the registration of 35 NBFCs in December 2025?

The action was under Section 45-IA(6) of the RBI Act, 1934.

2. How many NBFCs voluntarily surrendered their registration, in addition to the 35 cancellations?

Sixteen NBFCs surrendered their registration voluntarily.

3. Which feature distinguishes NBFCs from banks, as noted in the RBI action coverage?

NBFCs are RBI-regulated but cannot accept demand deposits.

This topic is part of Daily Current Affairs 9 January 2026 (13 topics).

All topics of the dayDay quizJanuary 2026

Read more