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REGULATING NON-BANKING

This role is, perhaps, the most unheralded aspect of our activities, yet it remains among the most critical. This includes ensuring credit availability to the productive sectors of the economy, establishing institutions designed to build the country’s financial infrastructure, expanding access to affordable financial services and promoting financial education and literacy.

Press Release


PDF document (343 kb)
Date : Jul 08, 2024
Reserve Bank cancels Certificate of Registration of Star Finserv India Limited due to irregular lending practices

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:

  1. 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.

  2. 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.

  3. 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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