The Reserve Bank of India (RBI) has taken many strict steps in the last month of the year. In a press release issued on December 18, RBI canceled the Certificate of Registration (COR) of four non-banking financial companies (NBFCs). These companies will no longer be allowed to do business. Besides, RBI has also lifted restrictions on two companies.
License canceled companies
The four NBFCs whose licenses were canceled by RBI include companies from Tamil Nadu, Uttar Pradesh, and Chhattisgarh:
Marwah Finance Private Limited (Raipur, Chhattisgarh) Ram Alloy Casting Private Limited (Kaushambi, Ghaziabad, Uttar Pradesh) PVC Capital Limited (Chennai, Tamil Nadu) Rainbow Finance India Limited (Kanchipuram, Tamil Nadu)
These companies are no longer allowed to provide financial services.
Two companies got relief
ECL Finance Limited:
The company was prohibited from undertaking structured transactions in respect of its wholesale exposures. Now this restriction has been lifted. Edelweiss Reconstruction Company Limited:
The company was prevented from acquiring financial assets and reorganizing existing security receipts. After following RBI guidelines and addressing concerns, these restrictions were removed.
impact on common people
Companies whose licenses have been canceled will no longer be able to provide financial services. The lifting of restrictions has given ECL Finance Limited and Edelweiss Reconstruction Company Limited an opportunity to run their businesses smoothly.
