Registration Certificate of Acemoney (India) Ltd Revoked Over Irregular Lending Practices

The Reserve Bank of India (RBI) has taken a significant step by cancelling the license of Acemoney (India), a Delhi-based non-banking financial company (NBFC). The decision to revoke the Certificate of Registration (CoR) stemmed from the company’s violations of RBI guidelines on risk management and code of conduct in outsourcing financial services, particularly evident in its digital lending operations facilitated through various third-party apps such as  ActLoan, AgMoney, NiceCash, among others.

The RBI highlighted that the company’s activities violated regulations pertaining to excessive interest rates and the safeguarding of customer information.

This move highlights the RBI’s dedication to maintaining the integrity of the financial system and protecting consumer interests. It also demonstrates the central bank’s strong stance against non-compliance with regulatory norms in the financial sector.

This development follows a series of regulatory actions targeting industry players for non-compliance. Notably, in October 2023, the RBI instructed Bank of Baroda to halt customer onboarding on its ‘BoB World’ mobile app due to concerns over customer acquisition practices. Similarly, Paytm Payments Bank was directed to cease deposit and credit transactions in January of the same year due to persistent non-compliance issues.

In a recent case, Kotak Mahindra Bank was instructed to suspend new customer acquisitions via its online and mobile banking channels and was prohibited from issuing fresh credit cards. The RBI attributed this action to deficiencies in the bank’s information technology (IT) systems.

The RBI’s decision to cancel Acemoney (India) Limited’s CoR emphasizes the central bank’s commitment to maintaining regulatory discipline and ensuring a transparent and compliant financial environment.