RBI cancels licence of non-banking company Acemony citing irregular lending practices
RBI, Reserve Bank of India, RBI
The Reserve Bank of India (RBI) on Monday, April 29, announced that it has cancelled the licence of Acemony (India) Ltd due to irregular lending practices.
The central bank cancelled the certificate of registration (CoR) of the company on account of violation of RBI guidelines on managing risks and the code of conduct in outsourcing of financial services in its digital lending operations undertaken through third party apps.
The central bank also found that the company was not complying with the extant regulations pertaining to charging of excessive interest and ensuring confidentiality of customer information.
In its release, the central bank said, “As such, the above company (Acemony (India) Ltd) 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 certificate of registration was issued to the company on February 21, 2017, as per RBI’s release.