RBI cancels Certificate of Registration these 5 NBFCs; Check the Name of the NBFCs

The Reserve Bank of India (RBI) notified the cancellation of Certificate of Registration of Five NBFCs i.e UMB Securities Limited, Anashri Finvest Limited, Chadha Finance Private Limited (now known as Chadha Finance Limited), Alexcy Tracon Pvt Ltd, Jhuria Financial Services Private Limited due to irregular lending practices via Press Release: 2022-2023/265 dated 25.05.2022.

The Press Release is Given Below:

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):

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 CoRs of the aforementioned NBFCs were revoked due to violations of RBI outsourcing rules and the Fair Practices Code in their digital lending activities conducted through third-party applications, which were deemed harmful to the public interest. These organisations were also not following existing restrictions regarding the charging of exorbitant interest and had resorted to excessive harassment of clients for loan collection purposes.

For Official Press Release Download PDF Given Below: