The Reserve Bank of India (RBI) cancelled certificate of registration (CoR) of five non-banking financial companies (NBFCs) for violating norms related to outsourcing and fair practices code in their digital lending operations.
"These companies were 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," RBI added.
Registration of five NBFCs canceled by RBI due to irregular lending practices - The CoR have been cancelled on account of violation of RBI guidelines on outsourcing and Fair Practices Code in their digital lending operations.