The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of five NBFCs due to irregular lending practices.
These include UMB Securities Ltd., Anashri Finvest Ltd., Chadha Finance Private Ltd., Alexcy Tracon Private Ltd. and Jhuria Financial Services Private Ltd.
“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 RBI said in a circular.
“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,” it said.
“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,” it added.
