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Deep rot: Why the RBI finally pulled the plug on Cashbean

The outfit operated in violation of various RBI norms. There was also a Chinese ownership angle, which triggered ED action. But Cashbean’s case isn’t an isolated incident.

February 25, 2022 / 02:16 PM IST

Google’s Play Store describes Cashbean as a personal loan app from PC Financial Services. The outfit, which is in the crosshairs of banking regulator Reserve Bank of India (RBI) as well as the Enforcement Directorate (ED) for a series of violations, promises to disburse personal loans instantly. The information on the Google Play Store is still visible.

On February 24, the RBI revoked the Certificate of Registration (CoR) of PC Financial, the non-banking finance entity that operated the digital lending app.

The regulator cited a raft of charges against the firm for gross violation of the Fair Practices Code and RBI directions on outsourcing and Know Your Customer norms. Cashbean was found to be charging borrowers usurious rates of interest and other charges in an opaque manner. It was also found to be indulging in unauthorised use of the RBI and CBI logos for recoveries, the Central bank said.

According to the company’s website, the directors of PC Financial services include Vaibhav Misha, Raguhvir Ghakar and Shishir Shah, all experienced professionals in the banking and financial industry.