There are some companies which are necessary for companies who are carrying NBFC activity to meet which are given by the Reserve Bank of India. Reserve Bank of India is empowered to cancel the NBFC License if the companies are not meeting public interest of public at large. RBI can also cancel the license if minimum net owned fund of Rs. 2 Cr. is not met.
What is NBFC License Cancellation
What are the circumstances in which NBFC License can be cancelled?
Following are the circumstances in which NBFC license can be cancelled and they are as follows-
1)Failed to repay the deposits.
2)Have failed to meet the minimum net owned fund of Rs. 2 Cr.
3)The Operation of NBFC is likely not in the interest of Public at large.
4)Have willfully violated the provisions of the act.
5)Have not filled the require Annual/ Quarterly returns to RBI.
6)Failed to apply for C-Kyc and membership of CIC.
7)Ignorance with prohibitory orders of RBI.
8)Not carrying NBFC activity or working on papers with no actual borrowers.
Reviewed by: BIATConsultant CA, CS, legal, tax, finance, and compliance expert team.
Last reviewed: May 28, 2026.
Relevant official references: Reserve Bank of India.
Important note: Timelines, government fees, professional fees, document requirements, and approvals depend on the applicable authority, applicant profile, document readiness, and current regulatory process.
FAQ
Common Questions Our Customers Ask Us - Solved!
What is circumstanced whereas Writ Petition should be referred to High Court?
1)When net owned Funds of Rs. 2 Cr. has been fulfilled after 31.03.2017 and before 31.03.2018.
2)An opportunity of being heard has not been given to the company.
3)Show cause notice issued by RBI and reply on time seeking extension has submitted well on time.
Where to file appeal against cancellation of NBFC License?
6 steps to follow before preparing for Appeal against NBFC License cancellation.
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