RBI canceled the license of NBFC, it was charging high interest from customers

RBI cancels license of Esmoney: The Reserve Bank of India (RBI) on Monday canceled the license (Certificate of Registration – COR) of an NBFC – Esmoney (India) Limited. RBI found this bank involved in wrong landing process, due to which this action has been taken. Esmoney has been found guilty of charging high interest from customers through different apps. Along with this, it has also been found guilty of leaking personal information of customers.

Why was the license cancelled?

AceMoney has been found guilty of violating RBI guidelines primarily in outsourced financial services. In particular, Esmoney was distributing digital loans through different third party apps, for which its license has been cancelled. RBI has taken this step under Section 45-IA (6) of the RBI Act, 1934.

Acemoney was registered in 2017

Acemoney (India) Limited was registered on February 21, 2017 under COR No. N14.03358. However, it was also found distributing loans through ActLoan, AgMoney, NiceCash and other apps.

Customer data was leaking

RBI said in a press note that the company is charging higher interest rates on digital loans from customers and is also leaking their personal information, which is a major breach of their security. To protect customers and maintain the strength of the financial system, RBI has canceled the license of Esmoney.