What is NBFC Surrender?
NBFC Surrender is the process of voluntarily closing down a Non-Banking Financial Company by returning its Certificate of Registration (CoR) to the RBI. It ensures proper settlement of funds, compliance with regulations, and a legally valid closure of operations.
Regulatory Compliance
NBFC must meet RBI conditions and clear statutory obligations before surrender.
Settlement of Liabilities
All deposits, borrowings, and public funds must be repaid or settled.
Formal Closure
RBI accepts the surrender and cancels the NBFC’s Certificate of Registration.
When is NBFC Surrender Required?
An NBFC may need to surrender its Certificate of Registration (CoR) in specific situations. These can arise voluntarily, due to business restructuring, or as directed by the RBI to ensure regulatory compliance.
Voluntary Closure
When the promoters decide not to continue NBFC operations and opt for a planned closure.
Non-Commencement of Business
If an NBFC is registered but never actually started financial activities.
Change in Business Model
When the company shifts its focus to non-financial or alternative financial services.
RBI Directive
If RBI finds non-compliance or directs cancellation of the CoR due to regulatory issues.