Executive Summary
The Reserve Bank of India has cancelled the Certificate of Registration (CoR) of seven Non-Banking Financial Companies (NBFCs) based in Kolkata. This action was taken under Section 45-IA (6) of the Reserve Bank of India Act, 1934. Following this cancellation, these companies are prohibited from transacting the business of a Non-Banking Financial Institution (NBFI).
1. Key Details of Cancelled Entities
The following companies have had their registrations cancelled. All entities listed are registered in Kolkata.
| Company Name | CoR No. | Issued On | Cancellation Date |
|---|---|---|---|
| Kanoi Leasfin Ltd | 05.00376 | Feb 26, 1998 | Jan 09, 2026 |
| Aditi Sanchar Suvidha Pvt Ltd | B.05.04609 | Oct 15, 2001 | Jan 09, 2026 |
| Welmen Dealcomm Pvt Ltd | B.05.04333 | Sep 07, 2001 | Jan 16, 2026 |
| CTC Investments Private Limited | N.05.06777 | Oct 22, 2008 | Jan 16, 2026 |
| Parrot Agencies & Credit Pvt Ltd | B.05.02341 | May 16, 1998 | Jan 28, 2026 |
| Monolisha Management Pvt. Ltd. | B.05.03915 | Jan 22, 2003 | Jan 28, 2026 |
| MKN Investment Pvt Ltd | B.05.04016 | Sep 02, 2001 | Jan 28, 2026 |
2. Root Cause Analysis (RCA)
The cancellation was executed under Section 45-IA (6) of the RBI Act, 1934. While the specific breach for each entity is not detailed in the press release, cancellations under this section are typically driven by the following root causes:
- Cessation of Business: The NBFC may have ceased to carry on the business of a non-banking financial institution in India.
- Capital Inadequacy: Failure to maintain the required Net Owned Fund (NOF) as prescribed by the RBI to ensure financial stability.
- Regulatory Non-Compliance: Persistent failure to comply with conditions specified at the time of registration or failure to adhere to RBI directions/guidelines regarding operations and reporting.
3. Preventive Controls
To avoid such regulatory actions, NBFCs must implement the following controls:
Strict Compliance Monitoring
Establish a dedicated compliance officer to ensure adherence to Section 45-IA requirements, specifically maintaining the minimum Net Owned Fund (NOF).
Operational Continuity
Ensure the company remains active in the business of NBFI. Dormant licenses are primary targets for cancellation under Section 45-IA(6).
Regular Reporting
Timely submission of statutory returns and audited balance sheets to the RBI to demonstrate financial health and operational status.
4. Lessons Learnt
The cancellation of these seven entities highlights that regulatory tenure is not permanent. Possessing a CoR requires continuous adherence to the RBI Act. The key lesson is that the RBI’s surveillance mechanism is active and will penalize entities that fail to maintain the requisite financial standing or operational intent. NBFCs must view compliance not as a one-time checkpoint but as an ongoing operational imperative.