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The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of M/s Margdarshak Financial Services Limited, a Non-Banking Financial Company (NBFC) headquartered at 118, Dayal Farms, Ganeshpur-Rehmanpur, Chinhat-Deva Road, Lucknow, Uttar Pradesh. The CoR (No. B-12.00364) was originally issued on March 22, 2011.
Following the cancellation, the company is no longer authorised to transact the business of an NBFC as defined under Section 45-I of the RBI Act, 1934.
Reasons for Cancellation
RBI cited multiple regulatory and financial deficiencies, including:
Cash flow issues and default of ₹49.27 crore to lenders as per the statutory audit for March 31, 2021, along with significant losses (₹187 crore) and high net NPAs (₹82.37 crore) casting doubt on the company’s ability to continue as a going concern.
Failure to maintain the minimum Net Owned Fund (NOF) of ₹5 crore and minimum Capital Adequacy Ratio of 15% required for NBFC-MFIs.
Delays in finalising the balance sheet for FY 2020-21, which was completed only on October 22, 2021, nearly seven months after year-end.
Considerable delays in submission of supervisory returns.
Net cumulative negative mismatches in various maturity buckets of 1–30 days exceeding prescribed thresholds.
Non-cooperation with RBI, including failure to provide requested information, books of accounts, or other documents.
RBI’s action reflects its commitment to ensuring financial stability, regulatory compliance, and protection of the interests of depositors and stakeholders.
[RBI]