Read in this week’s update, the withdrawal of 239 circulars by RBI on the recommendation of the Regulations Review Authority. RBI accepted the surrender of certificate of registration of seven NBFCs.
The Reserve Bank of India (RBI) has accepted the surrender of certificate of registration (CoR) of the following 7 (seven) non-banking financial companies (NBFCs):
|Sl. No.||Name of the Company||CoR Issued on||Cancellation Order Date|
|1||Pondicherry Industrial Promotion Development and Investment Corporation Ltd.||October 05, 2004||April 11, 2022|
|2||D. Devaraj Urs Backward Classes Development Corporation Limited||July 26, 2006||April 12, 2022|
|3||V. Rama Krishna Sons Private Limited||June 20, 2002||April 13, 2022|
|4||Lucky Mercantile Private Limited||March 06, 1998||April 19, 2022|
|5||Magnum Credit & Consultants Pvt. Ltd.||March 13, 2001||April 20, 2022|
|6||Optacredit Fintech Private Limited||December 21, 2016||April 27, 2022|
|7||Shreyas Holdings Pvt. Ltd.||March 31, 1999||April 29, 2022|
Hence, these companies shall not transact the business of a non-banking financial institution.
RBI has notified the withdrawal of 239 circulars as proposed by the Regulations Review Authority (RRA) which were applicable to the following:
- all scheduled commercial banks (including regional rural banks);
- all payments banks;
- all small finance banks;
- all local area banks;
- all authorized dealers; and
- all primary (urban) co-operative banks.
Further, lists of circulars recommended for withdrawal have been issued separately.
RBI had previously permitted lending by commercial banks to NBFCs and lending by small finance banks (SFBs) to NBFC-MFIs, for the purpose of on-lending to certain priority sectors, till March 2022. Now, it has been allowed on an ongoing basis.
4. RBI penalizes payment system operator (PSO)
RBI has imposed monetary penalty on:
|Name of the PSO||Penalty Imposed (in INR)||Reason|
|Unimoni FinancialServices Limited||29,79,000(Indian Rupees Twenty-Nine Lakh Seventy-Nine Thousand Only)||Non-compliance with the instruction contained in paragraph 9.1(i) of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI MD) dated October 11, 2017 (as updated on November 17, 2020).|
 Press Release: 2022-2023/189, Reserve Bank of India, May 10, 2022
 Press Release: 2022-2023/204, Reserve Bank of India, May 13, 2022
 RBI/2022-23/50FIDD.CO.Plan.BC.No.5/04.09.01/2022-23, Reserve Bank of India, May 13, 2022
 Press Release: 2022-2023/198, Reserve Bank India, May 12, 2022