RBI cancels Certificate of Registration of five NBFCs.

May 25, 2022 06:00 pm

Due to irregular lending practices the Reserve Bank of India today canceled Certificate of Registration (CoR) issued to the following five Non-Banking Financial Companies (NBFCs)

1. UMB Securities Limited having M/s Fastapp Technologies Private Limited as mobile app

2. Anashri Finvest Limited with various apps such as M/s Datimes Private Limited, M/s Bullintech Finance Private Limited, M/s TGHY Trustrock Private Limited, Mrupee, Kush Cash, Karna Loan, Mr Cash, FlyCash, More.

3. Chadha Finance Private Limited (now known as Chadha Finance Limited) with app as Wifi Cash

4. Alexcy Tracon Pvt Ltd also know as a service provider by name Badabro/ M/s Badabro Giga Venture Private Limited

5. Jhuria Financial Services Private Limited having apps M/s Aeritech Private Limited, M/s Finclub Technologies Private Limited, MoNeed, MoMo, CashFish, Kredipe, RupeeLand, Rupee Master

As such, the above companies shall not transact the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934.

The CoR of the abovementioned NBFCs have been cancelled on account of violation of RBI guidelines on outsourcing and Fair Practices Code in their digital lending operations undertaken through third party apps which was considered detrimental to public interest. These companies were also not complying with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.