Case Brief
What Happened
RBI has cancelled the Certificate of Registration issued to Kudos Finance and Investments Private Limited and Credit Gate Private Limited under Section 45-IA(6) of the RBI Act, 1934. The companies were found to have violated RBI Guidelines on Outsourcing and Fair Practices Code in their digital lending operations carried out through third-party apps, and the conduct was viewed as detrimental to public interest. RBI also noted non-compliance with regulations on charging excessive interest and the use of undue harassment of customers for loan recovery. Following cancellation, the companies cannot carry on the business of a Non-Banking Financial Institution.