RBI Cancels Registration of 7 NBFCs in January 2026: Full List, Reasons & What It Means for Customers

The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of seven Non-Banking Financial Companies (NBFCs) in a strong regulatory move aimed at cleaning up the financial sector.

The action, taken under Section 45-IA(6) of the RBI Act, 1934, came through a series of orders issued in January 2026, effectively barring these companies from conducting any NBFC-related business in India.

This development is important for customers, investors, and anyone dealing with NBFCs, as deregistered entities are no longer legally allowed to operate as financial institutions.

Why This RBI Decision Matters Right Now

Google Discover favors fresh, impactful, people-first financial news, and this RBI move checks all the boxes:

• Strengthens trust in India’s financial system
• Protects customers from inactive or non-compliant NBFCs
• Signals tighter RBI supervision in 2026
• Affects borrowers, lenders, and financial intermediaries

If you’ve ever taken a loan, invested money, or worked with an NBFC, this update directly impacts you.

Complete List of NBFCs Whose CoR Has Been Cancelled

Here is the official list of NBFCs deregistered by the RBI:

What Happens When RBI Cancels an NBFC’s Registration?

Once an NBFC’s CoR is cancelled:

• It cannot give loans or advances
• It cannot accept deposits
• It cannot operate as an NBFC in any form
• It loses regulatory recognition from RBI

Continuing NBFC operations after cancellation is considered illegal under Indian law.

Common Reasons Behind RBI Cancelling NBFC Licences

While RBI does not always publish entity-wise reasons, cancellations usually occur due to:

• Long-term non-compliance with RBI norms
• Failure to commence or continue NBFC business
• Insufficient Net Owned Funds (NOF)
• Non-submission of statutory returns
• Governance or supervisory concerns
• Prolonged inactivity

Such actions typically follow inspections, notices, and multiple opportunities for compliance.

What Should Customers and Borrowers Do Now?

If you are a customer or investor linked to any of these NBFCs:

• Avoid entering into new financial transactions
• Check loan or investment documents carefully
• Seek clarification directly from the company
• Consult a legal or financial advisor if required
• Always verify NBFC status on RBI’s official website

Being cautious can help you avoid regulatory and financial trouble.

RBI’s Bigger Message to the Financial Sector

This move reinforces RBI’s zero-tolerance stance on regulatory lapses. The central bank is clearly focused on:

• Cleaning up weak or inactive NBFCs
• Enhancing consumer protection
• Strengthening governance standards
• Maintaining financial stability

For compliant NBFCs, this is a reminder that regulatory discipline is not optional.

How to Check if an NBFC Is RBI-Registered

Before dealing with any NBFC, always:

• Verify the CoR number
• Confirm the company’s name in the RBI NBFC list
• Avoid entities claiming NBFC status without proof
• Stay alert to RBI press releases and circulars

A quick check can save you from major financial risk.

Read The Official Press Release Here

Final Takeaway

The RBI’s decision to cancel the registration of seven NBFCs in January 2026 is a clear signal of stricter oversight and stronger enforcement. For customers, this highlights the importance of dealing only with RBI-authorised financial institutions.

As regulatory scrutiny increases in 2026, more such actions could follow—making awareness and verification more important than ever.

RAJIL M P

Rajil M P is a seasoned banking professional with over eight years of experience in the Indian banking sector. He has successfully completed the JAIIB and CAIIB examinations conducted by the Indian Institute of Banking & Finance (IIBF), reflecting his strong academic foundation and practical expertise in banking, finance, and risk management. He is the founder and editor of IndianBanker.com, a trusted platform focused on banking news, exam preparation, financial updates, and practical tools for banking aspirants, professionals, and informed readers. Drawing from real-world banking experience, Rajil simplifies complex topics such as interest rates, loans, deposits, RBI policies, and government schemes, making them easy to understand and apply.