RBI canceled the license of these two banks, this is the reason why this step was taken
Newz Fast, New Delhi Reserve Bank of India: Taking a strict step, the Reserve Bank of India (RBI) has decided to cancel the license of two non-banking finance companies. For information, let us tell you that it was told by the RBI that the registration of Pune-based Kudos Finance and Investments Limited (Kudos Finance and Investments Pvt Ltd) and Mumbai-based Credit Gate (Credit Gate Pvt Ltd.) was cancelled. Has gone. Both NBFCs were involved in regulatory lapses in lending.
Registration canceled for this reason
The Reserve Bank (RBI) has issued a statement saying that now both cannot do business of non-banking financial institutions. On this, the Central Bank has said that the registration certificate of NBFC has been canceled.
If we look at the registration third party app, then their license has been canceled due to violation of RBI rules regarding outsourcing and fair practice activities regarding the work of digital loan operations.
harassed the customers
According to RBI, the rules are not being followed due to charging more interest on both NBFCs. At the same time, customers were also harassed unnecessarily regarding loan recovery.
In early February, the RBI imposed a fine of Rs 42.48 lakh on Krazybee Services Pvt Ltd. The matter of harassing the customers at the time of loan collection by Crazybee's recovery agent came to the fore.