Summary of this article
RBI cancels registration of 35 non-banking financial companies
Sixteen NBFCs voluntarily surrender registration in December 2025
Total of 51 entities exit NBFC regulatory framework
The Reserve Bank of India (RBI) has cancelled the Certificate of Registration of 35 non-banking financial companies (NBFCs), and accepted the voluntary surrender of registration from another 16 NBFCs as per two official press releases dated January 7, 2026. Following these actions, a total of 51 entities have left the NBFC regulatory framework.
The actions were taken under Section 45-IA(6) of the Reserve Bank of India Act, 1934. As per RBI, companies whose registration was cancelled or surrendered are not allowed to continue business as non-banking financial institutions as defined under the act.
Registration Cancelled for 35 NBFCs
RBI has stated that it had cancelled the Certificate of Registration of 35 NBFCs by orders passed between December 9 and December 31, 2025. With this cancellation, these entities are prohibited from carrying out any activity that involves NBFC registration.
The affected companies are registered in several states with a major concentration in Delhi. Other registered offices are located in Maharashtra, Madhya Pradesh and in a few additional regions. Many of these NBFCs were registered during the late 1990s and early 2000s.
RBI clarified that after cancellation, the companies are not allowed to accept public funds, extend loans or do any financial business coming under the definition of an NBFC in the ambit of the Reserve Bank of India Act, 1934. The press release did not specify company-wise reasons for cancellation but said that the action was taken using statutory powers.
Voluntary Surrender of Registration from 16 NBFCs
In a different press release, RBI has stated that 16 NBFCs have voluntarily surrendered their Certificate of Registration, which was, in turn, cancelled. These cases belong to three general categories according to the business status and regulatory classification.
Eight NBFCs surrendered registration after exiting the non-banking financial institution business. These entities told RBI that they had stopped operations in the NBFC business, and subsequently, their registration was cancelled.
Three companies surrendered registration following the criteria prescribed for unregistered core investment companies. Under existing norms, certain core investment companies that meet specified thresholds are not required to hold NBFC registration under RBI regulations.
Five NBFCs surrendered registration after cases such as amalgamation, merger, dissolution, or voluntary strike-off. In such cases, cancellation of registration follows as a procedural requirement once the entity is not in operation independently.
The total 16 NBFCs that gave up registration are registered in cities such as Mumbai, Kolkata, Chennai, Jaipur, Kanpur and Raipur. The effective dates of cancellation are scattered across various dates in December 2025.
What the Regulatory Action Means
RBI has stated that any financial activity done by these entities should be outside the purview of non-banking financial institution activity defined under the Reserve Bank of India Act,1934.
Cancellations and voluntary surrenders assist in maintaining an accurate registry and aligning it with shifts in business operations, legal framework, or regulatory classifications. RBI periodically reviews the status of the registered NBFCs to ensure that the regulatory framework reflects only eligible and operational entities.
