The Reserve Bank of India (RBI) has taken strict action against Datta Finance & Trading Pvt. Ltd., a New Delhi-based Non-Banking Financial Company (NBFC). RBI has cancelled the company’s registration for failing to comply with lending rules, particularly in its digital loan services.
Why RBI Took This Step
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The company was found violating RBI’s outsourcing guidelines for financial services.
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Instead of handling key functions internally, it had outsourced critical operations like:
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Finding new customers
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Verifying customer details (KYC)
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Approving loans
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Managing loan records
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Collecting repayments
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These tasks were being carried out through three mobile apps:
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KinCash
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DoLoan (operated by Zest Top One Technology Pvt. Ltd.)
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ZestCash (the company’s own app)
RBI stated that these practices were against regulatory norms, leading to the cancellation of the company’s NBFC license. This means Datta Finance can no longer conduct any NBFC activities, including offering loans.
What This Means for Customers
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Customers will no longer be able to take loans or avail NBFC services from Datta Finance & Trading Pvt. Ltd.
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Ongoing loans may still need to be repaid, but RBI will ensure a smooth process for customers affected by this decision.
