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Reserve Bank cancels Certificate of Registration of five NBFCs

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):

Sr. No.Name of the NBFCRegistered Office AddressCoR No.CoR Issued OnName of the services provider/mobile app
1UMB Securities LimitedNo.52, Pagariya Plaza, 28th C Cross, 11th Main Road, 4th Block Jayanagar, Bangalore, Karnataka – 560011B-02.00082May 13, 1998M/s Fastapp Technologies Private Limited
2Anashri Finvest LimitedNo.44/2, 14th B Cross, Sarakki, JP Nagar 1st Phase, Adjacent to JP Nagar Metro Station, Bengaluru, Karnataka- 560 078B 02-00121April 03, 2018M/s Datimes Private Limited, M/s Bullintech Finance Private Limited, M/s TGHY Trustrock Private Limited, Mrupee, Kush Cash, Karna Loan, Mr Cash, FlyCash, More.
3Chadha Finance Private Limited (now known as Chadha Finance Limited)House No. 79, Floor 1st, Block A PKT 4 Sector 16, Rohini, New Delhi-110085B-14-02415December 15, 2005Wifi Cash
4Alexcy Tracon Pvt Ltd10C, Sir William Jones Sarani, 4th Floor, Kolkata, West Bengal-700071B.05.05016March 04, 2003Badabro/ M/s Badabro Giga Venture Private Limited
5Jhuria Financial Services Private LimitedSecond Floor, Babu Bazar, Guwahati, Assam-78100108.00067August 27, 1998M/s Aeritech Private Limited, M/s Finclub Technologies Private Limited, MoNeed, MoMo, CashFish, Kredipe, RupeeLand, Rupee Master

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.

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