The Reserve Bank on Wednesday mentioned it has cancelled Certificate of Registration (CoR) of 5 NBFCs for violation of norms associated to outsourcing and truthful practices code of their digital lending operations.
Non-Banking Financial Companies (NBFCs) whose CoR stands cancelled are: UMB Securities Ltd, Anashri Finvest, Chadha Finance, Alexcy Tracon, and Jhuria Financial Services.
“The CoR of the (five) 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,” the RBI mentioned.
It additional mentioned these corporations had been additionally not complying with the extant rules pertaining to charging of extreme curiosity and had resorted to undue harassment of consumers for mortgage restoration functions.