It's yet another example of  big impact of Zee Business' campaign #OperationHaftaVasooli.

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Zee Business ran a campaign #OperationHaftaVasooli in the interest of the borrowers who became victim of such NBFCs and their ill-treatment.

In a major development, Reserve Bank has cancelled Certificate of Registration (CoR) of 5 NBFCs due to irregular lending practices. 

1

UMB Securities Limited

2

Anashri Finvest Limited

3

Chadha Finance Private Limited (now known as Chadha Finance Limited)

4

Alexcy Tracon Pvt Ltd

5

Jhuria Financial Services Private Limited

In a press release, RBI said, "In exercise of the powers conferred under Section 45-IA (6) (iv) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following five Non-Banking Financial Companies (NBFCs):

 

WATCH: Zee Business' campaign #OperationHaftaVasooli

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"As such, the above companies 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," RBI added in the statement.

"The CoR of the above mentioned 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 to public interest. 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 further added.