RBI Grade B Current Affairs — 12 June 2026

RBI cancelled registration of 135 NBFCs while 13 others voluntarily surrendered their certificates in 2026. This regulatory action reflects RBI's ongoing cleanup of dormant and non-compliant NBFCs from the financial system. The cancellations primarily targeted entities that ceased operations, failed compliance requirements, or became inactive. Voluntary surrenders indicate NBFCs exiting business voluntarily. This continues RBI's systematic approach to streamline the NBFC sector, ensuring only viable and compliant entities operate in India's shadow banking ecosystem.

This regulatory cleanup represents RBI's systematic effort to strengthen India's shadow banking sector following the 2018 NBFC crisis that began with IL&FS default. The 135 cancellations likely include dormant NBFCs, entities failing minimum capital requirements, those not conducting business, or having compliance violations. Voluntary surrenders by 13 NBFCs suggest strategic exits rather than regulatory punishment.

For India's financial stability, this housekeeping exercise removes shell companies and inactive entities that could pose systemic risks. It also improves sector transparency and investor confidence. The action aligns with RBI's broader NBFC regulatory framework introduced post-2018, including scale-based regulation, enhanced governance norms, and stricter liquidity requirements.

From an examination perspective, this connects to NBFC classification (deposit-taking vs non-deposit-taking), registration requirements under Section 45-IA of RBI Act, minimum capital norms (₹2 crore for most NBFCs), and RBI's supervisory powers. The cleanup also reflects implementation of recommendations from various committees on NBFC regulation and the need for proportionate regulation based on size and systemic importance.

RBI issued guidelines mandating banks can only lend to SEBI-registered and listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This directive ensures lending flows to regulated, transparent investment vehicles with proper disclosure norms. Move aims to strengthen financial stability by preventing exposure to unregulated real estate and infrastructure entities. Banks must verify SEBI registration and stock exchange listing before extending credit facilities to these trusts.

This RBI directive addresses systemic risks in bank lending to real estate and infrastructure sectors. REITs and InvITs are collective investment schemes that pool money from investors to invest in income-generating real estate or infrastructure assets. SEBI registration ensures these trusts comply with disclosure, governance, and operational standards. Stock exchange listing provides liquidity and transparent price discovery. The guideline prevents banks from lending to unregulated property developers or infrastructure companies disguised as investment trusts. This protects depositor funds and maintains asset quality. Banks often faced challenges distinguishing genuine REITs/InvITs from shell companies. The directive creates clear boundaries, reducing regulatory arbitrage. It also aligns with global practices where institutional lending targets regulated investment vehicles. For the real estate sector, this pushes developers toward formal REIT structures, improving transparency. Infrastructure financing gains credibility through regulated InvIT frameworks. The move supports RBI's broader financial stability mandate while channeling credit through supervised, well-governed investment platforms.