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RBI cancels registration of six NBFCs including a GE Capital arm

The Reserve Bank of India has cancelled the certificates of registration of six Delhi-based non-banking financial companies, including GE Strategic Investments India and Praxis Consulting and Information Services Pvt Ltd, as per a disclosure.

GE Strategic Investments is a part of GE Capital and had in the past co-invested in few Indian firms alongside GE Capital’s PE unit.

Other four NBFCs, whose certificate of registrations has been cancelled, are Profound Exports Pvt Ltd, Two Brothers Holding Ltd, Swank Services Pvt Ltd and Credible Microfinance Ltd, formerly known as Credible Securities & Finance Pvt Ltd.

Following the cancellation, these companies cannot transact business as non-banking financial institutions, RBI said in the statement.

Earlier last week, RBI cancelled the non-banking finance registration certificate of Deutsche Securities India for carrying business as a non-banking financial institution (NBFI).

Last month, the central bank had cancelled certificates of registration of three NBFCs belonging to Andhra Pradesh, saying that as these were conducting business as NBFIs. The three NBFCs were Hyderabad-based Vishnu Finance & Investment Private Limited and Margadarsi Investment and Leasing Company Private Limited and Vijayawada-based Siber Financial Services Private Limited.

NBFCs are companies that are primarily into lending, investments in various types of shares or stocks, bonds debentures, securities, leasing, hire-purchase, insurance business, chit business. On the other side, NBFIs are institutions that cater to various financial needs and can also be groups of financial institutions.

(Edited by Joby Puthuparampil Johnson)

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