RBI cancels licence of Assam-based Rhino Finance

The company has violated RBI guidelines on outsourcing and Fair Practices Code in its digital lending operations undertaken through third party apps which was considered detrimental to public interest, the RBI said.

The Reserve Bank of India (RBI) on March 2 said that it has cancelled the certificate of registration of Rhino Finance Private Limited due to irregular lending practices.

The non-banking finance company had received the certificate of registration on October 16, 2000.

The company has violated RBI guidelines on outsourcing and Fair Practices Code in its digital lending operations undertaken through third party apps which was considered detrimental to public interest, the RBI said in a release.

ALSO READ: RBI imposes monetary penalty on Rajkot Commercial Co-operative Bank over rule violations

The central bank mentioned the name of the third party applications. These are Hello Loan, Credithub, KoKo Cash, Flash Loan, Bridge Loan, Crazy Bee, Credit Wallet, CashTM, UU Cash, Rupee Plus, Credit Rupee, Cash Daddy, Get Rupee, Cashin, Credit Club and Rupee Bus.

Further, the company was also not complying with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes, the central bank added.