RBI cancels registration certificate of 3 Andhra-based NBFCs

MUMBAI: The Reserve Bank has cancelled certificates of registration of three non-banking financial companies (NBFCs) belonging to Andhara Pradesh as these were carrying business as non-banking financial institutions (NBFIs).
"The RBI has cancelled the certificate of registration of three non-banking financial companies (NBFCs) for carrying on the business of non-banking financial institution," RBI said in a notification.

"Following cancellation of registration certificate, the companies cannot transact the business of non-banking financial institution," it said.

Of the three NBFCs, Vishnu Finance & Investment Private Limited and Margdarsi Investment and Leasing Company Private Limited are based in Hyderabad. Siber Financial Services Private Limited belongs to Vijaywada.

An NBFC is a company with its principal business is lending, investments in various types of shares or stocks, bonds debentures, securities, leasing, hire-purchase, insurance business, chit business.

Their main business is receiving deposits under any scheme or arrangement in one lump sum or in installments.

While, NBFIs are a group of institutions catering to various financial requirement. They can be groups of financial institutions, NBFCs or primary dealers (or banks).