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
The company was found violating RBI’s outsourcing guidelines for financial services.
Instead of handling key functions internally, it had outsourced critical operations like:
Finding new customers
Verifying customer details (KYC)
Approving loans
Managing loan records
Collecting repayments
These tasks were being carried out through three mobile apps :
KinCash
DoLoan (operated by Zest Top One Technology Pvt. Ltd. )
ZestCash (the company’s own app)
RBI state