The Reserve Bank of India (RBI) in exercise of the powers conferred under Section 45-IA (6) (iv) of the RBI Act, 1934 has cancelled the Certificate of Registration (CoR) issued to the following five Non-Banking Financial Companies (NBFCs).
| Name | Registered Office | Name of the services provider/Mobile App |
|---|---|---|
| UMB Securities Limited | Bengaluru, Karnataka | Fastapp Technologies Private Limited |
| Anashri Finvest Limited | Bengaluru, Karnataka | M/s Datimes Private Limited, M/s Bullintech Finance Private Limited, M/s TGHY Trustrock Private Limited, Mrupee, Kush Cash, Karna Loan, Mr Cash, FlyCash, More |
| Chadha Finance Private Limited (now known as Chadha Finance Limited) | New Delhi, Delhi | Wifi Cash |
| Alexcy Tracon Pvt Ltd | Kolkata, West Bengal | Badabro/ M/s Badabro Giga Venture Private Limited |
| Jhuria Financial Services Private Limited | Guwahati, Assam | M/s Aeritech Private Limited, M/s Finclub Technologies Private Limited, MoNeed, MoMo, CashFish, Kredipe, RupeeLand, Rupee Master |
Cancellation Impact:
Now with cancellation of CoR, these companies cannot transact the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Reasons behind CoR Cancellation:
i.They have violated RBI guidelines on outsourcing and Fair Practices Code in their digital lending operations undertaken through third party apps.
ii.These companies also not complied with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.
Central Government issues norms for import of gold by Qualified Jewellers
In exercise of powers conferred by Section 3 read with Section 5 of Foreign Trade (Development and Regulation)-FTDR Act, 1992 read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, the Central Government has amended the import policy conditions for gold in any form, other than monetary gold and silver in any form, and issued guidelines for the same.
- The notification for the same was issued by RBI. Click Here to Read
The guidelines are for physical import of gold through India International Bullion Exchange IFSC (IIBX) or similar authorized exchange by Qualified Jewellers (QJ) in India.
- In January 2022, the agencies nominated by the RBI and by the Directorate General of Foreign Trade (DGFT), QJs as approved by International Financial Services Centers Authority (IFSCA) were also permitted to import gold.
Key Points:
i.As per guidelines, Authorised Dealer Category – I (AD) banks may allow QJs to remit advance payments for 11 days for import of gold through IIBX in compliance to the extant Foreign Trade Policy and regulations issued under IFSC Act.
ii.In case the import of gold through IFSCA authorised exchange, for which advance remittance has been made, does not materialise, or the advance remittance made for the purpose is more than the amount required, the unutilized advance remittance shall be remitted back to the same bank within the specified time limit of 11 days.
iii.QJs for imports of gold through IIBX, will be made through exchange mechanism as approved by IFSCA.
Points to be noted:
i.Gold imports dipped by about 72% to USD 1.72 billion during April 2022, from USD 6.23 billion April 2021..
ii.DGFT formulate and implement the Foreign Trade Policy and Procedures in terms of FTDR Act, 1992.
RBI enhances Ceiling on Loans for Home Repairs
The RBI also revised the ceiling on loans to individuals for carrying out repairs/additions/alterations to their homes to Rs 10 lakh in metros from Rs 5 lakh; and Rs 6 lakh in rural and semi urban areas from Rs 2 lakh earlier.
Recent Related News:
i.On 2 March 2022, the Reserve Bank of India (RBI) canceled the license of Sarjeraodada Naik Shirala Sahakari Bank Ltd of Shirala, Sangli (Maharashtra) due to compliance failure with the regulation under Section 11(1) ,Section 22 (3) (d) and Section 56 Banking Regulation Act 1949. The bank is found to lack adequate capital and earning prospects under section 11(1) and section 22(3) (d) read with section 56 of the Banking Regulation Act, 1949.
ii.In February 2022, the RBI also canceled the license of Independence Co-operative Bank, Nashik (Maharashtra) as it does not have adequate capital and earning prospects. The bank failed to comply with the requirements of the Banking Regulation Act, 1949.
About Reserve Bank of India (RBI):
Establishment– April 1, 1935
Headquarters– Mumbai, Maharashtra
Governor– Shaktikanta Das
Deputy Governors– Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar
