RBI cancels Certificate of Registration of Private Company; Know Why?:

RBI cancels Certificate of Registration of Private Company; Know Why? The Reserve Bank of India(RBI) has cancelled the Certificate of Registration of of M/s Rhino Finance Private Limited due to irregular lending practices. In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following Non-Banking Financial Company (NBFC): As a result, the aforementioned corporation is prohibited from conducting the activity of a non-banking financial institution (NBFI), as that term is defined in Section 45-I of the RBI Act of 1934, clause (a). The CoR of the abovementioned company has been cancelled on account of violation of RBI guidelines on outsourcing and Fair Practices Code in its digital lending operations undertaken through third party apps which was considered detrimental to public interest. The company was 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.