Reserve Bank cancels Certificate of Registration of five NBFCs due to irregular lending practices, 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 and not complying with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.
Reserve Bank of India has cancelled the Certificate of Registration issued to the following five Non-Banking Financial Companies ie, Anashri Finvest Limited, Alexcy Tracon Pvt Ltd, Chadha Finance Limited,Jhuria Financial Services Private Limited and UMB Securities Limited. Now the above Financial Companies shall not transact the business of a Non-Banking Financial Institution.