New Delhi: The Reserve Bank on Wednesday, May 25 said it has cancelled certificate of registration (CoR) of five NBFCs for violation of norms related to outsourcing and fair practices code in their digital lending operations.

The non-bank lenders whose registrations were cancelled by RBI on Wednesday include UMB Securities Ltd, Anashri Finvest Ltd, Chadha Finance Private Ltd (now known as Chadha Finance Ltd), Alexcy Tracon Pvt Ltd and Jhuria Financial Services Pvt Ltd.

"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 said.

Also read: Why a Larger Spotlight Is Needed on Co-lending Deals Between Banks and NBFCs

It further 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.

According to Mint, these 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.

(With PTI inputs)

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