RBI cancels Acemoney India NBFC licence citing irregular lending practices

The Reserve Bank of India (RBI) on Monday cancelled the certificate of registration of Acemoney India Ltd, a non-banking financial company (NBFC) based in the northwestern part of the national capital, citing irregular lending practices. The RBI had granted the certificate of registration (licence) to the NBFC in February 2017.  

The company "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 banking regulator said. 

The RBI cited violations of its guidelines on managing risks and code of conduct in the outsourcing of financial services in its digital lending operations undertaken through third-party apps as the rationale behind its action. It also said that the company was "not complying with the extant regulations pertaining to charging of excessive interest and ensuring the confidentiality of customer information".

The company provided loan services through a number of apps, including ActLoan, AgMoney, NiceCash, CashLender,QuickRupee, Leading Cash, TopCash, CreditEasy, InhanCash, and KeyBorrow. Other apps operated by the company included Rushloan, CaymanCash, Loan Union, Instant Loan, Urupee, CashYes, RupeeUp, RupeeYes, Cashfull, Dreamloan, Grandloan, HopeLoan, KreditLoan, Leloloan, LendNow, PunchMoney, RocLoan, RupeeGo, HavCash, QuickCash, Cashere, Cash Delivery and Cash Dove.

This step underscores the central bank's commitment to maintaining the integrity of the financial system and protecting the interests of consumers, and highlights its zero-tolerance approach towards non-compliance with regulatory norms in the financial sector.