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The Reserve Bank of India (RBI) has cancelled the registration of two non-banking financial companies (NBFCs) for allegedly harassing borrowers, following the ban on Chinese lending apps.
The central bank cancelled Kudos Finance and Credit Gate’s Certificate of Registration (CoR) on February 13. The central bank stated that the digital lending operations undertaken by these two NBFCs via third-party apps were detrimental to the public interest, citing violations of the RBI guidelines on outsourcing and the Fair Practices Code. The Reserve Bank of India Act, 1934, was used to issue the orders barring the two entities.
