In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the following Non-Banking Financial Company (NBFC): | Name of the NBFC | Registered Office Address | CoR No. | CoR Issued On | Name of the services provider/mobile app | | Star Finserv India Limited | 8-2-268/K/35, Plot No. 35, Navodaya Colony, Road # 2 Banjara Hills, Hyderabad, Telangana | B-09.00208 | September 04, 2015 | Progcap (owned and operated by Desiderata Impact Ventures Private Limited). | As such, the above company 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 CoR has been cancelled by RBI as: -
The company has violated RBI guidelines on code of conduct in outsourcing of financial services in its digital lending operations by outsourcing its core decision-making functions such as credit appraisal, loan sanctioning as well as KYC verification process to the service provider. -
The company has violated RBI guidelines on data confidentiality and security of customer information by providing complete access to customer data to the service provider. -
The company has violated RBI guidelines on Fair Practices Code by not providing the copy of loan agreement and sanction letter in vernacular language to its customers. (Puneet Pancholy)
Chief General Manager Press Release: 2024-2025/651 |
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