RBI cancels licence of 4 parabanking cos, 7 surrender licence

File Photo: Finance Minister Arun Jaitley with RBI Governor Raghuram Rajan in the USA.

India’s banking sector regulator, Reserve Bank of India has cancelled the licence of four non banking financial services companies.

Para banking companies or NBFCs are those companies who can collect and deposit cash from investors but can not issue banking instruments like cheque book and drafts etc.

RBI further said that 7 para banking companies have surrendered their licences and these would not be allowed to transact any business.

Out of the seven firms who have returned their licences, six are based in Mumbai and one in Pune.

These NBFCs are Kolkata-based Neelanjali Engineering and Novoflex Tradecom, Mumbai’s Guide Investments and Trading and Pune-headquartered Enol Ventures.

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