RBI cancels registration of five NBFCs due to irregular lending practices

The firms have been accused of charging excessive interest rates and harassing customers for loan recovery, among other things

The Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of five non-banking finance companies (NBFCs) due to irregular lending practices, including charging excessive interest rates and harassment of customers for loan recovery.

The five NBFCs whose CoR have been cancelled are UMB Securities Ltd, Anashri Finvest Ltd, Chadha Finance Ltd, Alexcy Tracon Pvt Ltd, and Jhuria Financial Services Pvt Ltd.

“The CoR of the abovementioned 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