The Reserve Bank of India (RBI) has taken a major action against non-banking financial companies (NBFCs), cancelling the registrations of 135 entities. The move was carried out under Section 45-IA(6) of the relevant RBI framework, with the deregistration order issued on the previous day. According to the report, the RBI’s decision targets firms that have failed to meet regulatory requirements and are no longer operating in a compliant manner within the NBFC space.
A large share of the deregistered companies—125 out of the total 135—are based in West Bengal. These West Bengal-based NBFCs have been removed from RBI’s register after the regulator found issues related to non-compliance with registration and operating norms. The story emphasizes that the companies were deregistered for not adhering to registration standards and for not meeting the conditions required for maintaining NBFC authorization.
The RBI’s action is described as a “big breaking” development, reflecting the scale of the deregistration. While the report does not outline detailed case-by-case reasons for each company, it clearly links the cancellation decision to failure to comply with registration norms and related regulatory expectations. The underlying theme is that RBI has identified that these entities were either not complying with required standards or were effectively ceasing NBFC activities.
In practical terms, cancelling an NBFC’s registration is a strong regulatory step. It signals that the entity is no longer permitted to carry out NBFC functions under the RBI regime. The report indicates that deregistration was also connected to the companies ceasing NBFC activities, implying that RBI found either that the firms had stopped functioning as NBFCs in the expected manner, or that the firms had not maintained adequate compliance to continue operations as registered financial intermediaries.
For the remaining 10 companies, which are not described as being based in West Bengal, the report similarly frames their removal as a consequence of the same regulatory concerns: non-compliance with registration requirements and related eligibility conditions. Although the story concentrates on the high number of West Bengal-based deregistered firms, it makes clear that the regulatory action extends across multiple entities beyond that region.
This development comes at a time when regulators across financial markets are placing increased emphasis on compliance, governance, and adherence to licensing conditions. For investors, borrowers, and other stakeholders, RBI deregistration can affect confidence and clarity around which institutions are authorized to conduct NBFC activities. It also reduces the risk of unregulated or improperly regulated financial services continuing under the umbrella of NBFC status.
The report’s framing suggests that RBI’s step is not just punitive but also corrective—aimed at cleaning up the NBFC ecosystem by removing firms that do not satisfy compliance standards or that have stopped operating as NBFCs. By taking such action under a specific section of its statutory framework (Section 45-IA(6)), RBI is formally exercising its authority to cancel registrations when companies fail to meet the conditions required for staying on the NBFC register.
Overall, the key takeaway from the news is the large-scale deregistration of NBFCs by the RBI. The cancellation of 135 registrations, including 125 West Bengal-based firms, highlights the regulator’s focus on enforcing registration norms and ensuring that only compliant entities continue to operate as NBFCs. The story underlines that the deregistered firms were removed due to non-compliance with registration requirements and because they were no longer operating as NBFCs in a manner consistent with RBI expectations.
Source: Source
Megh Updates 🚨™: 🚨 BIG BREAKING: Surgical Strike by RBI RBI CANCELS registration of 135 NBFCs (Non-Banking Financial corp) yesterday under Section 45-IA(6)! Out of them 125 are West Bengal-based companies deregistered for non-compliance, failing registration norms & ceasing NBFC activities.. #breaking
— @MeghUpdates May 1, 2026
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