-Major action against NBFC X10 Financial Services Limited
Mumbai The Reserve Bank has taken major action against non-banking financial company (NBFC) X10 Financial Services Limited. The Reserve Bank of India (RBI) has canceled the registration of X10 Financial Services Limited. The Mumbai-based company was providing loans through various service providers (mobile apps) such as WeCash Technology, XNP Technology, Yarlung Technology, Xinrui International, Mad-Elephant Network Technology and Hydatech Technology.
What did the Reserve Bank say?
The Reserve Bank said that the company's certificate of registration (CoR) was canceled due to violation of the guidelines of the code of conduct in outsourcing financial services in its digital lending operations. The company outsourced critical functions like loan appraisal, interest rate determination and KYC verification to service providers. He also said that this led to the service provider failing to investigate. X10 Financial Services Limited was formerly known as Abhishek Securities Limited. The company was granted a certificate of registration in June 2015.
The committee will evaluate
Meanwhile, the Reserve Bank of India (RBI) has reconstituted the Standing External Advisory Committee (SESC) to evaluate applications received from universal and small finance banks. The five-member committee is headed by former Reserve Bank Deputy Governor M.K. Must be Jain. Preliminary scrutiny of applications for universal and small finance banks is conducted by RBI as per the licensing guidelines to ensure prima facie eligibility of the applicants.
Other members of the committee include Revathi Iyer (Director, Central Board, RBI); Parvati V Sundaram (former executive director, RBI), Hemant G Contractor (former managing director, SBI and former chairman PFRDA); and N S Kannan (former Managing Director and Chief Executive Officer, ICICI Prudential Life Insurance Company).
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