Reserve Bank cancels Certificate of Registration (CoR) of five NBFCs due to irregular lending practices

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)

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.