RBI Cancels License of Acemoney: The Reserve Bank of India (RBI) on Monday canceled the license (Certificate of Registration – CoR) of an NBFC – Acemoney (India) Limited.
RBI Cancels License of Acemoney: The Reserve Bank of India (RBI) on Monday canceled the license (Certificate of Registration – CoR) of an NBFC – Acemoney (India) Limited. RBI found this bank involved in wrong landing process, due to which this action has been taken. Acemoney 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 mainly in outsourced financial services. Especially Acemoney 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 Number N14.03358. However, it was also found distributing loans through ActLoan, AgMoney, NiceCash and other apps.
Customer data was being leaked
RBI said in a press note that the company was charging higher interest rates on digital loans from customers and was also leaking their personal information, which is a major violation of their security. To protect customers and keep the financial system strong, RBI has canceled the license of Acemoney.
