RBI cancels registration certificate of 3 Kolkata based NBFCs

The Reserve Bank has cancelled certificate of registration of three Kolkata based non-banking financial companies (NBFCs) as they were carrying on business of non-banking financial institution (NBFIs).

"Following cancellation of registration certificate, the companies cannot transact the business of non-banking financial institution," RBI said in a notification.

The three companies are Mona Finvest Private Limited, Jinvani Commercial Private Limited and Negus Mercantile Private Limited.

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

Its principal business is receiving deposits under any scheme or arrangement in one lump sum or in instalments.

On the other hand, NBFIs are a heterogeneous group of institutions catering to a wide range of financial requirements.