Mumbai (Maharashtra) [India], May 25 (ANI): The Reserve Bank of India (RBI) on Wednesday said it has cancelled the Certificate of Registration (CoR) of five Non-Banking Financial Companies (NBFCs) due to irregular lending practices.

The NBFCs whose Certificate of Registrations have been cancelled include UMB Securities Limited, Anashri Finvest Limited, Chadha Finance Private Limited (now known as Chadha Finance Limited), Alexcy Tracon Pvt Ltd and Jhuria Financial Services Private Limited.

Also Read | Yasin Malik Sentenced to Life Imprisonment by NIA Court in 2017 Terror Funding Case.

"As such, the above companies shall not transact the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934," the RBI said in a statement.

The CoR of the abovementioned NBFCs have been cancelled on account of violation of RBI guidelines on outsourcing and Fair Practices Code in their digital lending operations undertaken through third-party apps which was considered detrimental to the public interest, the RBI said.

Also Read | Who Qualifies in Case LSG vs RCB is Washed Out Due to Rain? Will There be a Super Over in IPL 2022 Eliminator if no Match Takes Place? Find Out Here!.

"These companies were 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. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)