Case Brief
The Reserve Bank of India has cancelled the Certificate of Registration of five NBFCs under Section 45-IA(6)(iv) of the RBI Act, 1934. The action covers UMB Securities Limited, Anashri Finvest Limited, Chadha Finance Private Limited (now known as Chadha Finance Limited), Alexcy Tracon Pvt Ltd, and Jhuria Financial Services Private Limited. RBI said the cancellations were due to violations of outsourcing guidelines and the Fair Practices Code in digital lending operations routed through third-party apps, along with non-compliance relating to charging excessive interest and undue harassment of customers for loan recovery. The release also states that these companies shall not transact the business of a Non-Banking Financial Institution.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Action Type