The Reserve Bank of India on Friday said 20 non-banking financial companies, including Reliance Commercial Finance and IDFC Limited, have surrendered their certificate of registration (CoR). Of these, two non-banking financial companies (NBFCs) have surrendered their CoR as they have exited from the non-banking financial institution business. These NBFCs are Manoway Investments Private Limited and Reliance Commercial Finance Limited. IDFC Ltd, IDFC Financial Holding Company Ltd and other 16 entities surrendered the CoR as it ceased to be a legal entity due to amalgamation or merger. Besides, the RBI cancelled the CoR of 17 NBFCs, the central banks said in another statement. These NBFCs whose licences were cancelled had their registered office in West Bengal. In a separate statement, RBI said it has restored the licence of Kamdhenu Finance Company Pvt Ltd after considering the orders passed by the Appellate Authority/Courts.
Overall bank exposure to NBFCs as share of total bank credit declined in 2023-24, which bodes well for overall financial stability, according to the Reserve Bank of India
RBI governor nudges NBFCs towards Unified Lending Interface
RBI Governor Sanjay Malhotra on Thursday asked NBFCs to ensure customers are treated fairly and put in place a mechanism for quick redressal of grievances. The governor met with managing directors and chief executive officers of select non-banking financial companies (NBFCs) across all layers, including government NBFCs, housing finance companies and micro-finance institutions. These NBFCs constitute nearly 50 per cent of the total assets of the NBFC sector. Malhotra, in his opening remarks, underscored the role played by NBFCs in credit intermediation, particularly in making credit available for small businesses and niche segments, the Reserve Bank of India (RBI) said in a statement. Highlighting the collaborative efforts required between the Reserve Bank and the NBFCs, the Governor stressed upon balancing growth aspirations with sound practices for ensuring inclusive development, customer protection and financial stability. "He also underscored the significance of ensuring fair
Finance Minister Nirmala Sitharaman on Monday said action will be taken in case there are violations of well laid down processes for auctioning of gold by banks and NBFCs when a borrower fails to pay the gold loan. During Question Hour in Lok Sabha, she said Non Banking Financial Companies (NBFCs) and Scheduled Commercial Banks (SCBs) are guided by similar rules. There are very well laid down and tight processes in place for auctioning of gold by NBFCs and banks in case a borrower fails to pay the gold loan. These processes are followed by NBFCs and banks, she told Lok Sabha. There is a process for giving enough number of notices to bank account holders to say their servicing is not up to the mark. In the eventuality of a borrower not coming back to pay, the bank or NBFC will be forced to go for an auction, the minister said. Sitharaman stressed that even while going for an auction, there are very well laid out procedures and tight processes. "... if these processes are violated,
The Reserve Bank of India (RBI) announced the launch of two domains: '.bank.in' for all Indian banks and 'fin.in' for NBFCs
The RBI has directed large NBFCs to disclose total loan charges, including interest and fees, and mandates board approval for maximum rates to enhance transparency and fair lending practices
In May 2024, the Department of Financial Services had asked SBI to set up a co-lending committee to address issues related to its business model
With a favorable demand outlook for gold loans driven by reduced competition from banks and limited availability of unsecured credit, the company is well positioned to maintain its growth momentum.
For Manappuram Finance, the gold loan growth will continue to remain healthy, driven by demand-side tailwinds due to the poor availability of short-term personal and MFI loans.
Margins under pressure for NBFC unit
In the past six trading days, Bajaj Finance share has soared 15 per cent. On January 30, 2025, the stock had surpassed its previous high of Rs 8,190 touched in October 2023
Complaints about mobile or e-banking form majority of those received by the RBI ombudsman against banks
NBFCs can assess a customer differently and provide a credit solution that differentiates them from banking (companies)
RBI's punitive actions over the last year have encompassed both banks and non-banks
As and when the RBI comes out with a roadmap, we will relook at the way we do business and make the necessary changes, Umesh Revankar, Executive Vice-Chairman, Shriram Finance said
The RBI in its circular had directed regulated entities to replace "penal interest" with "penal charges" for borrowers who fail to comply with loan terms
By December 31 last year, the company's total assets under management increased by 19 per cent to Rs 2,54,469.69 crore
While the company's long-term prospects are promising, the volatility in earnings and the uncertain near-term outlook warrant a more cautious approach, according to analysts.
NBFC firm Bajaj Finance and Bharti Airtel on Monday announced a strategic partnership to create a digital platform for financial services. The one-of-a-kind partnership brings together Airtel's customer base of 370 million, about 12 lakh strong distribution network, and Bajaj Finance's diversified suite of 27 product lines, and distribution heft of 5,000 more branches and 70,000 field agents, a joint statement said. Airtel will initially offer Bajaj Finance's retail financial products on its Airtel Thanks App for seamless and secure customer experience, and later through its nation-wide network of stores, it said. The combined strength of the companies' digital assets will enable Airtel and Bajaj Finance to significantly deepen penetration of financial products and services, it said. Gopal Vittal, vice chairman and MD, Bharti Airtel, said, "today, we are trusted by over 1 million customers and our vision is to make Airtel Finance a one-stop shop for all the financial needs of our .