[ad_1]
Reserve Bank of India: Strict action has been taken by the Reserve Bank of India (RBI) against two Non-Banking Finance Companies (NBFCs).
It was informed by the RBI that the registration of Pune based Kudos Finance and Investments Limited (Kudos Finance and Investments Private Limited) and Mumbai based Credit Gate Private Limited has been cancelled. Both the NBFCs were involved in regulatory lapses in lending.
Certificate of Registration was canceled
In a statement issued by the Reserve Bank (RBI), it has been said that after the cancellation of the Certificate of Registration (CoR), both NBFCs (NBFCs) cannot do business of Non-Banking Financial Institutions (NBFIs). The central bank said, ‘…the registration certificate of the NBFC has been cancelled. The registration has been canceled due to violation of RBI guidelines on outsourcing and fair dealing activities in digital loan operations through third party apps.
harassed customers unnecessarily
According to RBI, both the NBFCs mentioned above were also not following the extant norms of charging exorbitant interest. Along with this, the customers were unnecessarily harassed regarding loan recovery. In early February, the RBI had imposed a penalty of Rs 42.48 lakh on Crazybee Services Pvt Ltd. A case of harassment of customers at the time of loan recovery by Crazybee’s recovery agent came to the fore.
[ad_2]
Source link
