Mumbai : Reserve Bank of India on Thursday said it has cancelled the registration of PC Financial Services on account of violation of its directions on outsourcing and KYC norms.
“The CoR (certificate of registration) of the company has been cancelled on account of supervisory concerns such as gross violations of RBI directions on outsourcing and Know Your Customer norms,” RBI said in a statement issued here. PCFS was primarily engaged in mobile app-based lending operations through an app called ‘Cashbean, it said. “As such, PC Financial Services 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,” it said.
It further said that the company was also found to be charging usurious rates of interest and other charges to its borrowers in an opaque manner apart from indulging in unauthorized use of logos of the Reserve Bank and Central Bureau of Investigation for recovery from the borrowers in gross violation of the Fair Practices Code.
