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RBI cancels registration of 5 NBFCs due to irregular lending practices

Posted Date : 26-May-2022 , 08:47:21 am | Posted By CASANSAAR print Print

In exercise of the powers conferred under Section 45-IA (6) (iv) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following five Non-Banking Financial Companies (NBFCs):

Sr. No. Name of the NBFC Registered Office Address CoR No. CoR Issued On Name of the services provider/mobile app
1 UMB Securities Limited No.52, Pagariya Plaza, 28th C Cross, 11th Main Road, 4th Block Jayanagar, Bangalore, Karnataka - 560011 B-02.00082 May 13, 1998 M/s Fastapp Technologies Private Limited
2 Anashri Finvest Limited No.44/2, 14th B Cross, Sarakki, JP Nagar 1st Phase, Adjacent to JP Nagar Metro Station, Bengaluru, Karnataka- 560 078 B 02-00121 April 03, 2018 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) House No. 79, Floor 1st, Block A PKT 4 Sector 16, Rohini, New Delhi-110085 B-14-02415 December 15, 2005 Wifi Cash
4 Alexcy Tracon Pvt Ltd 10C, Sir William Jones Sarani, 4th Floor, Kolkata, West Bengal-700071 B.05.05016 March 04, 2003 Badabro/ M/s Badabro Giga Venture Private Limited
5 Jhuria Financial Services Private Limited Second Floor, Babu Bazar, Guwahati, Assam-781001 08.00067 August 27, 1998 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.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/265

Category : Income Tax | Comments : 0 | Hits : 809

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