RBI cancels registration of Rhino Finance due to irregular lending practices
The company was 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, the RBI said.
The Reserve Bank of India on Thursday said it has cancelled the registration of Guwahati-based Rhino Finance Private Ltd for irregular lending practices.
In a release, it said the Certificate of Registration (CoR) of Rhino Finance has been cancelled on account of violation of RBI guidelines on outsourcing and Fair Practices Code in its digital lending operations undertaken through third party apps which was considered detrimental to public interest.
"The company was 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," the RBI said.
Name of the services provider/mobile app associated with the company include Hello Loan, Credithub, KoKo Cash, Flash Loan, Bridge Loan, Crazy Bee and Rupee Bus.
With cancellation of the CoR, Rhino Finance shall not transact the business of a non-banking financial institution, the central bank said.
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