NOF Default: Delhi HC Orders RBI to Reconsider NBFC Registration Cancellation  

RBG Leasing And Credit Limited Vs Reserve Bank of India & Anr. (Delhi High Court)

In the case of RBG Leasing And Credit Limited Vs Reserve Bank of India & Anr., the Delhi High Court addressed the cancellation of the petitioner’s Non-Banking Financial Company (NBFC) registration due to failure to meet the mandated Net Owned Fund (NOF) of Rs. 200 lakh by the specified deadline. The petitioner, an NBFC since May 2001, was subject to RBI’s regulatory framework, which required NBFCs to maintain an NOF of Rs. 100 lakh by March 2016 and Rs. 200 lakh by March 2017.

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