On January 7, 2026, the Reserve Bank of India (RBI) announced that it has cancelled the Certificates of Registration (CoR) of 35 non-banking financial companies (NBFCs), including Satya Prakash Capital Investment Limited and Sunlife Securities Pvt Ltd. RBI also cancelled 16 NBFCs who gave up their licences voluntarily.
This action was taken under Section 45-IA(6) of the RBI Act, 1934 — the legal provision that allows RBI to grant and also revoke NBFC registrations.
Once an NBFC’s licence is cancelled, it is not allowed to do any financial business like lending, financing, or investment activities.
Why were the registrations cancelled?
The RBI cancelled the registration of 35 NBFCs mainly because of the following issue:
- Regulatory non-compliance – NBFCs are allowed to operate only if they regularly follow the rules set by the RBI. These rules include having enough own capital (minimum Net Owned Funds), submitting reports and financial statements on time, managing money safely by following capital and asset norms, and running the company properly with good governance and operations.
The RBI cancelled the registration of these these NBFCs because they did not follow these rules or failed to meet the conditions under which their licences were originally given. Since they were not complying with RBI requirements, they were no longer allowed to continue as NBFCs.
Because of this non-compliance, RBI forcefully cancelled their licences. Most of these companies are based in Delhi, with a few in Mumbai and Jabalpur.
Other 16 NBFCs gave up their licences voluntarily:
These companies themselves requested RBI to cancel their licences. This happened for three main reasons:
- These companies chose to stop carrying out NBFC activities. Since they were no longer involved in the finance business, they surrendered their NBFC licences to the RBI.
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They qualified as unregistered Core Investment Companies (3 companies). These companies invest only in their own group companies. As per RBI rules, such companies are not required to hold an NBFC licence, so they gave up their registration.
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The companies no longer exist (5 companies). These companies were merged with others, closed down, dissolved, or removed from records. Since they no longer exist legally, their NBFC licences were cancelled.
NBFCs play an important role in India’s financial system by providing loans and services where banks may not reach, especially to small businesses and individuals. RBI regulation helps ensure that these companies operate safely, protect customers and lenders, and keep the financial system stable.
RBI is actively working to clean up the NBFC sector, making sure that only companies that follow the rules and are financially healthy continue to operate
