The Reserve Bank of India has announced the restoration of the Certificate of Registration (CoR) for two non-banking financial companies (NBFCs), while confirming the cancellation of Smartlink Holdings Ltd’s NBFC registration. These regulatory actions reflect RBI’s ongoing efforts to maintain transparency, enforce compliance, and support structural transitions within India’s financial services sector. The decisions were made following judicial reviews, voluntary exits, and corporate restructuring initiatives.
Here is a detailed overview of the developments and their broader implications.
Key Highlights From RBI’s Regulatory Update
- RBI restores CoR of two NBFCs after appellate and judicial review
- Jupiter Management Services Private Limited confirmed as one of the restored entities
- Smartlink Holdings Ltd’s NBFC registration cancelled following voluntary surrender
- Regulatory actions aligned with RBI’s supervisory framework and governance standards
Restoration Of Registration For Two NBFCs
The RBI reinstated the registration of two NBFCs after reviewing appeals and court orders. Jupiter Management Services Private Limited, based in Gurgaon, was among the entities whose CoR was restored on June 12, 2025. The decision allows these companies to resume operations under RBI’s regulatory oversight.
Restored NBFCs are required to:
- Comply with the RBI Act, 1934 and all applicable guidelines
- Submit periodic financial and operational disclosures
- Maintain adequate capital buffers and risk management systems
The restoration reflects RBI’s balanced approach to enforcement and redressal, offering regulated entities a pathway to resume business after corrective action.
Smartlink Holdings Surrenders NBFC License Amid Business Realignment
In contrast, Smartlink Holdings Ltd voluntarily surrendered its NBFC registration as part of a strategic shift in its business model. The company, previously registered as a non-deposit taking, non-systemically important NBFC, ceased financial operations following its amalgamation with Synegra EMS Ltd.
Key details of the transition include:
- Effective cancellation of NBFC registration confirmed by RBI
- Shift in primary business focus to electronics and IT manufacturing
- Exit from financial services aligned with corporate restructuring under NCLT-approved scheme
Smartlink’s decision to exit the NBFC space was disclosed to stock exchanges in February 2025, and the company now operates as a contract manufacturer for original equipment manufacturers.
Implications For The NBFC Sector
These regulatory actions underscore RBI’s evolving oversight of the NBFC sector, which has seen increased scrutiny in recent years. The implications include:
- Reinforcement of compliance standards and governance expectations
- Encouragement for voluntary exits where business models no longer align with financial services
- Support for revival and restructuring through judicial and regulatory channels
RBI continues to monitor the sector closely, balancing enforcement with flexibility for genuine business transitions.
Sector-Wide Trends And Regulatory Landscape
The NBFC sector has witnessed a mix of cancellations, restorations, and voluntary exits. Recent trends include:
- Cancellation of CoRs for entities with persistent non-compliance
- Restoration of licenses based on judicial review and corrective action
- Voluntary surrender by companies undergoing mergers or business diversification
RBI’s actions are guided by its mandate to ensure financial stability, protect consumer interests, and promote responsible lending practices.
Conclusion: RBI Balances Enforcement With Flexibility In NBFC Oversight
The restoration of registration for Jupiter Management Services and the cancellation of Smartlink Holdings’ NBFC license reflect the Reserve Bank of India’s nuanced approach to regulating the non-banking financial sector. While enforcing compliance and governance, RBI continues to provide avenues for appeal, restructuring, and voluntary transition. As the financial services landscape evolves, such decisions reinforce the importance of transparency, accountability, and strategic alignment.
Sources: Reserve Bank of India Press Release, Smartlink Holdings Corporate Disclosure, Economic Times, Business Standard, Rediff MoneyWiz
