RBI cancels registration certificate of P C Financial Services operating 'Cashbean' app

The Reserve Bank of India (RBI) on Thursday said it has cancelled the certificate of registration (CoR) of P C Financial Services primarily engaged in mobile app-based lending operations through an app 'Cashbean' on account of supervisory concerns. With cancellation of CoR, the RBI said New Delhi-based P C Financial Services Pvt Ltd will not transact the business of a non-banking financial institution (NBFI).

The NBFI was primarily engaged in mobile app-based lending operations through an app called 'Cashbean'.

"The CoR of the company has been cancelled on account of supervisory concerns such as gross violations of RBI directions on outsourcing and Know Your Customer norms," the central bank said in a statement.

The RBI further said the company was also found to be "charging usurious rate of interest" and other charges to its borrowers in an opaque manner apart from indulging in unauthorised use of logos of the RBI and the Central Bureau of Investigation for recovery from the borrowers in gross violation of the Fair Practices Code.