In a sweeping regulatory enforcement action to tighten oversight across India’s shadow banking sector, the Reserve Bank of India (RBI) has cancelled the Certificates of Registration (CoR) of 13 non-banking financial companies (NBFCs). The punitive cancellations were executed under the statutory powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934, effectively barring these entities from transacting any non-banking financial business. Significantly, a vast geographical concentration of the penal actions centers on eastern India, with 11 of the 13 penalized NBFCs headquartered in West Bengal, while the remaining two operate out of Tamil Nadu. The formal revocation orders, processed across staggered dates in September 2026, take immediate legal effect to protect investor assets and sanitize financial channels.
Strict Invocation of Section 45-IA: The 13 Non-Banking Lenders Barred from Operations
The central bank’s order prohibits the listed entities from operating as non-banking financial institutions under clause (a) of Section 45-I of the RBI Act:
West Bengal Cluster Hit: Eleven entities registered in West Bengal lost their operating licenses, including Nakodar Finance, Ajitnath Steels, Astrol Dealcom, Bhagyashree Trading, Boo Finance Company, and Brightex Financial Services.
Additional Entities Named: The RBI also revoked the registration certificates of Sajili Exchange, Bhumika Fiscal Services, Blue Mount Exports, Delta Capital Market, Rajesh Fiscal Services, Sarla Finance, and Shreyans Vyapar.
Immediate Operational Freeze: With the cancellation of their CoRs, none of these 13 firms can accept deposits, disburse commercial credit, or function in any lending or investment capacity within the formal financial system.
Voluntary Surrenders: 10 NBFCs Relinquish Operating Permits to Central Bank
Alongside the punitive revocations, the banking regulator confirmed that 10 other NBFCs formally surrendered their registration certificates due to restructuring, reclassification, or business wind-downs:
Exit from Lending Business: Six financial entities voluntarily relinquished their licenses after choosing to exit the non-banking financial services business, including Pragati Fincap, Rajlaxmi Vanijya, Vivriti Capital, MSJ Colonizing and Leasing Company, PKSL Investments, and HCL Corporation.
Transition to Unregistered Categories: PCR Investments surrendered its certificate after meeting regulatory requirements to operate as an unregistered Core Investment Company (CIC), which does not mandate separate RBI registration.
Type-I NBFC Reclassification: Aparna Investment surrendered its CoR after fulfilling compliance thresholds to operate as an unregistered Type-I NBFC.
Corporate Amalgamations and Dissolutions: The remaining two entities, Vandana Gruh Nirman and Ramsisaria Builders, surrendered their permits following legal dissolution resulting from mergers, amalgamations, and corporate restructuring.
Tightening the Shadow Banking Net: Enforcement Timeline and Industry Impact
The twin official releases issued by the central bank emphasize continuing scrutiny over corporate governance and statutory compliance:
Statutory Execution: Both regulatory notices were formally publicized on October 9, confirming that administrative cancellations had been executed across September 2026.
Systemic Health of NBFC Sector: The RBI’s steady weeding out of non-compliant, inactive, or shell entities ensures that only well-capitalized, transparent, and strictly compliant lenders operate within India’s credit landscape.
Clean-up of Regional Hubs: The heavy concentration of cancellations in West Bengal marks an ongoing drive by banking authorities to eliminate dormant or non-compliant balance sheets from regional corporate clusters.