RBI Cancels Acemoney (India) NBFC License for Irregular Lending Practices

The Reserve Bank of India (RBI) has revoked the license of Acemoney (India) Limited, a Delhi-based non-banking financial company (NBFC), citing irregular lending practices. This action stems from the company’s violation of RBI guidelines regarding excessive interest charges and inadequate protection of customer information. Specifically, the RBI noted discrepancies in Acemoney’s management of risks and code of conduct in its digital lending operations through third-party apps.

Background of Violations

Acemoney’s license cancellation follows a string of regulatory interventions within the financial industry due to non-compliance issues. Earlier instances include the RBI instructing Bank of Baroda to halt customer onboarding via its mobile app ‘BoB World’ and directing Paytm Payments Bank to cease deposit and credit transactions due to persistent non-compliances. Kotak Mahindra Bank also faced restrictions on acquiring new customers and issuing credit cards due to deficiencies in its IT systems.

Enforcement Action by RBI

The RBI exercised its authority under Section 45-IA (6) of the Reserve Bank of India Act, 1934, to cancel Acemoney India’s NBFC license. The company, registered in February 2017, operated loan services through various apps such as AgMoney, NiceCash, Leading Cash, and others. This enforcement action underscores the RBI’s commitment to maintaining the integrity and stability of India’s financial system.

Piyush Shukla

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