AK & Partners
AKP Banking & Finance Digest- May 16, 2022
Updated: Sep 22, 2022
Read in this week's update, the withdrawal of 239 circulars by RBI on the recommendation of the Regulations Review Authority. RBI accepted the surrender of certificate of registration of seven NBFCs.
Highlights of the Week:
Seven Non-Banking Financial Companies surrender their Certificate of Registration
RBI withdraws 239 circulars
RBI allows lending by commercial banks to NBFCs and small finance banks (SFBs) to NBFC-MFIs, for the purpose of on-lending to priority sectors on an ongoing basis
RBI penalizes payment system operator (PSO)
1. Seven Non-Banking Financial Companies surrender their Certificate of Registration
The Reserve Bank of India (RBI) has accepted the surrender of certificate of registration (CoR) of the following 7 (seven) non-banking financial companies (NBFCs):
Name of the Company
CoR Issued on
Cancellation Order Date
Pondicherry Industrial Promotion Development and Investment Corporation Ltd.
October 05, 2004
April 11, 2022
D. Devaraj Urs Backward Classes Development Corporation Limited
July 26, 2006
April 12, 2022
V. Rama Krishna Sons Private Limited
June 20, 2002
April 13, 2022
Lucky Mercantile Private Limited
March 06, 1998
April 19, 2022
Magnum Credit & Consultants Pvt. Ltd.
March 13, 2001
April 20, 2022
Optacredit Fintech Private Limited
December 21, 2016
April 27, 2022
Shreyas Holdings Pvt. Ltd.
March 31, 1999
April 29, 2022
Hence, these companies shall not transact the business of a non-banking financial institution.
2. RBI withdraws 239 circulars
RBI has notified the withdrawal of 239 circulars as proposed by the Regulations Review Authority (RRA) which were applicable to the following:
all scheduled commercial banks (including regional rural banks);
all payments banks;
all small finance banks;
all local area banks;
all authorized dealers; and
all primary (urban) co-operative banks.
Further, lists of circulars recommended for withdrawal have been issued separately.
3. RBI allows lending by commercial banks to NBFCs and small finance banks (SFBs) to NBFC-MFIs, for the purpose of on-lending to priority sectors on an ongoing basis
RBI had previously permitted lending by commercial banks to NBFCs and lending by small finance banks (SFBs) to NBFC-MFIs, for the purpose of on-lending to certain priority sectors, till March 2022. Now, it has been allowed on an ongoing basis.
4. RBI penalizes payment system operator (PSO)
RBI has imposed monetary penalty on:
Name of the PSO
Penalty Imposed (in INR)
(Indian Rupees Twenty-Nine Lakh Seventy-Nine Thousand Only)
Non-compliance with the instruction contained in paragraph 9.1(i) of the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI MD) dated October 11, 2017 (as updated on November 17, 2020).
 Press Release: 2022-2023/189, Reserve Bank of India, May 10, 2022
 Press Release: 2022-2023/204, Reserve Bank of India, May 13, 2022
 RBI/2022-23/50FIDD.CO.Plan.BC.No.5/04.09.01/2022-23, Reserve Bank of India, May 13, 2022
 Press Release: 2022-2023/198, Reserve Bank India, May 12, 2022