According to the audit, as of March 31, 2021, the NBFC was facing cash flow issues and had defaulted on repayment of Rs 49.27 crore to its lenders. The RBI said the company failed to furnish the required information sought by the bank and refused to cooperate in producing books of accounts or other documents during on-site inspection.
Cancelling the company’s registration, RBI said that as of March 31, 2021, the company failed to maintain the minimum regulatory net owned fund of Rs 5 crore and minimum capital adequacy ratio (CAR) of 15 percent prescribed for NBFC-MFIs.
According to the audit, as of March 31, 2021, the NBFC was facing cash flow issues and had defaulted on repayment of Rs 49.27 crore to its lenders. The central bank said-
Further, a delay was observed in finalisation of the balance sheet for the year ended March 31, 2021, as it was finalised on October 22, 2021, after nearly seven months. RBI said there was a considerable delay in submission of supervisory returns.
Necessary information not submitted
RBI said the company failed to furnish the required information sought by the bank and refused to cooperate in producing books of accounts or other documents during on-site inspection. Meanwhile, RBI imposed fines on NDX P2P Pvt Ltd and Innofin Solutions Pvt Ltd for non-compliance with certain provisions of ‘peer-to-peer lending platform’ and guidelines on digital lending.
Innofin Solutions Pvt Ltd (also known as “LenDen Club”) has been fined Rs 1.99 crore, RBI said in a statement. Another statement said NDX P2P Pvt Ltd has been fined Rs 1.92 crore.
