RBI Cancelled License: The Reserve Bank of India has taken major action against the non-banking financial company (NBFC) X10 Financial Services Limited. The Reserve Bank said that it has cancelled the registration of X10 Financial Services Limited due to irregularities in digital loan operations.
RBI Cancelled License: The Reserve Bank of India has taken major action against the non-banking financial company (NBFC) X10 Financial Services Limited. The Reserve Bank said that it has cancelled the registration of X10 Financial Services Limited due to irregularities in digital loan operations. This Mumbai-based company was providing loans through several service providers (mobile apps) including Vcash Technology, XNP Technology, Yarlung Technology, Shinrui International, Mad-Elephant Network Technology and Huadatech Technology.
What did the Reserve Bank say
The Reserve Bank said that the Certificate of Registration (COR) has been canceled because the company has violated the guidelines on the code of conduct in outsourcing financial services in its digital loan operations. The company outsourced its core functions such as credit assessment, fixing interest rates as well as KYC verification to the service provider. Along with this, it failed to investigate the service provider.
Registration certificate was issued in 2015
Let us tell you that X10 Financial Services Limited was earlier known as Abhishek Securities Limited. The company was issued a registration certificate in June 2015.
The committee will assess bank license applications
Meanwhile, the Reserve Bank has reconstituted the Standing External Advisory Committee (SEAC) to assess applications for universal (providing all kinds of banking services) banks and small finance banks. The five-member committee will be chaired by former Reserve Bank of India Deputy Governor M.K. Jain. As per the licensing guidelines, preliminary scrutiny of applications for universal and small finance banks is done by the RBI to ensure prima facie eligibility of the applicants.
Other members of the committee include Revathi Iyer (Director, Central Board, RBI); Parvati V Sundaram (Former Executive Director, RBI); Hemant G Contractor (Former Managing Director, SBI and Former Chairman PFRDA); and N S Kannan (Former Managing Director and CEO, ICICI Prudential Life Insurance Company).
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