In exercise of the powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to the Star Finserv India Limited.
The CoR has been cancelled by RBI as:
The company has violated RBI guidelines on code of conduct in outsourcing of financial services in its digital lending operations by outsourcing its core decision-making functions such as credit appraisal, loan sanctioning as well as KYC verification process to the service provider.
The company has violated RBI guidelines on data confidentiality and security of customer information by providing complete access to customer data to the service provider.
The company has violated RBI guidelines on Fair Practices Code by not providing the copy of loan agreement and sanction letter in vernacular language to its customers.
