The Reserve Bank of India (RBI) cancelled certificates of registration of five non-bank financiers citing violation of guidelines on outsourcing and fair practices code in their digital lending operations through third-party apps.
The non-bank lenders whose licences were cancelled by RBI include, UMB Securities Ltd, Anashri Finvest Ltd, Chadha Finance Private Ltd, Alexcy Tracon Pvt Ltd and Jhuria Financial Services Pvt Ltd. These companies were also not complying with regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.
RBI said in a statement, “The certificate of registration of the above mentioned 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 non-banking financial companies (NBFCs) used to run apps and service providers like Fastapp Technologies Private Ltd, Datimes Pvt Ltd, Bullintech Finance Pvt Ltd, TGHY Trustrock Pvt Ltd, Mrupee, Kush Cash, Karna Loan, Mr Cash, FlyCash, More, Wifi Cash, Badabro, Aeritech Pvt Ltd, Finclub Technologies Pvt Ltd, MoNeed, MoMo, CashFish, Kredipe, RupeeLand and Rupee Master.
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