RBI cancels CoR of two Gujarat based Non-banking FIs

AHMEDABAD: Reserve Bank of India ( RBI) today restricted two non-banking financial institutions(NBFIs) from transacting business allegedly for not complying with the operating guidelines and procedures.

The certificate of registration (CoR) of the two NBFI's-Tulip Finlease Private Limited & Galaxy Consolidated Finance Limited-were cancelled by the RBI.

The CoR's of the two companies were cancelled on May 29 and June 6, respectively, a RBI statement said.

While, Tulip has its registered office in Ahmedabad, Galaxy is a Rajkot based NBFI.

In exercise of powers conferred on it under sub-section (6) of section 45-IA of the Reserve Bank of India has cancelled the CoR of these companies, as these companies have voluntarily cease to be NBFIs, a statement from RBI's Department of Non-Baning Supervision regional office Ahmedabad, in a national daily said.

The two companies cannot transact business. They have surrendered original CoR, it stated.