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Taking significant action, the Reserve Bank of India (RBI) has cancelled the registrations of 150 Non-Banking Financial Companies (NBFCs). Of these, the highest number—75 companies—are based in West Bengal, followed by 67 companies in New Delhi. Additionally, companies from Telangana, Haryana, Madhya Pradesh, Bihar, Tamil Nadu, and Karnataka are also included in this list. The RBI has explicitly stated that these companies will no longer be permitted to operate as non-banking financial institutions. Action has been taken against several companies for reasons such as non-compliance with regulations, ceasing NBFC operations, or ceasing to exist as legal entities. Concurrently, seven other NBFCs have voluntarily surrendered their registrations.

Most importantly, the cancellation of a registration does not, under any circumstances, imply that your loan has been waived. If you have availed a car loan, personal loan, business loan, or any other form of credit from one of these NBFCs, you are still required to repay your EMIs just as you did before. The company retains the legal right to recover its outstanding dues.

**Loans May Be Transferred to Another Company**

In such situations, NBFCs often sell their entire loan portfolio to another financial institution or bank. This means that, in the future, your EMI payments may be directed to a new bank or finance company. In such instances, customers are typically notified by the new company taking over the portfolio.

**Stopping Payments Will Damage Your CIBIL Score**

If a customer stops paying their EMIs under the mistaken belief that the company has shut down, they will be the ones to suffer the consequences. Information regarding your default will continue to be recorded in your CIBIL records, potentially damaging your credit score. A poor CIBIL score can create difficulties in obtaining loans or credit cards in the future.

**Greater Concern for Fixed Deposit Holders**

If you hold a Fixed Deposit (FD) with an NBFC whose registration has been cancelled, the situation may be somewhat sensitive. Once a registration is revoked, the company is prohibited from accepting new deposits or renewing existing FDs. The company is now required to liquidate its assets to repay its depositors. 

No Insurance Cover of ₹5 Lakhs
This is the most critical point. While Fixed Deposits (FDs) held with banks are covered by insurance of up to ₹5 lakh under the DICGC, no such protective cover applies to FDs held with NBFCs. If a company goes bankrupt, the liquidator settles claims by selling off the company's assets. In this process, secured creditors receive their funds first, followed by the remaining depositors.

Which Companies Faced Action?
The RBI's action encompasses several companies, including Basera Nirman, HBC Finance and Leasing, Classic Securities, Ind Corp Securities, Advantage Equi Fund, Abhishek Capital Services, Astute Finance, and Kallarakkal Fincorp. Additionally, the registrations of a large number of finance and investment companies based in West Bengal and New Delhi have also been cancelled.

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