The Reserve Bank of India on Monday stated it has cancelled the registration of two non-banking finance corporations (NBFCs) – Pune-based Kudos Finance and Investments and Mumbai-based Credit Gate – for regulatory lapses in lending practices.
With cancels Certificate of Registration (CoR), the 2 NBFC shouldn’t transact the business of a Non-Banking Financial Institution (NBFI), the RBI stated in a press release.
“The CoR of the 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 stated.
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According to the assertion, the entities had been additionally not complying with the extant laws pertaining to charging of extreme curiosity and had resorted to undue harassment of consumers for mortgage restoration functions.
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Source: economictimes.indiatimes.com