The Reserve Bank of India (RBI) has taken major action against PC Financial Services Pvt Ltd for disobeying instructions. The central bank has canceled its certificate of registration. Now it will not be able to do any kind of transaction.
According to a report issued in this regard, “This action has been taken in exercise of the powers conferred under Section 45-IA (6) (iv) of the Reserve Bank of India Act, 1934. RBI issued a notice to M/s PC Financial Services Pvt Ltd. The Certificate of Registration (COR) has been canceled. The RBI statement said that it will not transact as an NBFI since then. was found to be indulging in arbitrarily charging high interest rates and other charges from its borrowers.
Action taken for violation of rules
According to the report, the reason behind this action has been cited as the unauthorized use of the logo of the central bank and CBI and charging high interest rates as well as violation of several rules. Let us inform that PC Financial Services was primarily associated with mobile app based lending operations through an app called ‘CashBean’. The central bank said that the company’s CoR has been canceled for violation of RBI guidelines on outsourcing and KYC.