The Reserve Bank of India (RBI) on Friday cancelled the certificate of registrations of 31 Non-Banking Financial Companies (NBFCs).
The RBI cancelled the registration in the exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.
Recently, the RBI eased liquidity norms for banks in order to release additional funding for NBFCs.
NBFCs have been under pressure recently due to fears of a liquidity crisis, high valuations and asset-liability mismatches.
On October 19, the central bank increased lenders' single borrower exposure limit for NBFCs which do not finance infrastructure, from 10 to 15 per cent of capital funds.
The exposure limit will remain effective up to December 31, 2018. (ANI)