RBI Revokes Datta Finance's License Over Irregular Lending Practices
The Reserve Bank of India has revoked the registration of Datta Finance and Trading due to irregularities in its digital lending practices. The company breached guidelines by outsourcing core functions like customer sourcing and loan disbursement to third-party apps, leading to the cancellation of its non-banking financial institution status.
- Country:
- India
The Reserve Bank of India (RBI) announced the cancellation of Datta Finance and Trading Pvt Ltd's certificate of registration due to irregular lending practices.
The financial institution, based in New Delhi, violated RBI guidelines by outsourcing critical decision-making functions, such as customer sourcing and loan disbursement, to third-party service providers, according to a statement from the central bank.
As a result of these breaches, the company is no longer permitted to operate as a non-banking financial institution, the RBI confirmed on Monday.
(With inputs from agencies.)
Advertisement
Google News