NBFC

 RBI Streamlines Voluntary Surrender Process for NBFCs and HFCs

The Reserve Bank of India, through its press release dated 30 June 2026, has revised the application form and indicative checklist for the voluntary surrender of the Certificate of Registration (CoR) by Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). The revision follows the issuance of the RBI (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026, particularly the changes relating to Unregistered Type I NBFCs.

The updated application process is available through the PRAVAAH portal, and entities seeking voluntary cancellation of their CoR are required to submit the revised application along with all prescribed supporting documents in accordance with the updated checklist.

A significant clarification in the press release is that submission of an application does not, by itself, result in cancellation of the Certificate of Registration. Until the RBI formally approves the application and communicates the cancellation, the concerned NBFC or HFC must continue to comply with all applicable regulatory instructions issued by the RBI, the National Housing Bank (where applicable), and other competent authorities. This includes the continued filing of all prescribed regulatory and supervisory returns.

The revised framework enhances procedural clarity for entities intending to exit the regulated NBFC ecosystem while reinforcing that regulatory obligations remain fully enforceable until the CoR is formally cancelled. It underscores the RBI's emphasis on an orderly and compliant exit process, preventing any regulatory vacuum during the transition period.